Article Abstract:
This discussion of the likelihood of Social Security and retirement benefit reforms in the US concludes that any reform will be incremental unless there is a crisis in the system, and that incremental change will be in the direction of less paternalism and greater individual choice. Because of the split political parties at the federal level, dramatic change remains unlikely. One way President George W. Bush could make a significant change in pension policy is to enact a flat tax or a consumption tax, which would diminish or eliminate tax advantages of tax-sheltered savings and capital accumulation.
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Article Abstract:
This study finds good arguments for a Social Security system utilizing individual accounts and requiring annuitization of these accounts at the time of retirement. In comparing the proposed system with the current Social Security systems, the use of several existing types of individual immediate life annuities offers greater freedom in investment and deals with issues of fairness while allowing for bequests. Rough calculations indicate that diversion of 2% of payroll taxes to fund individual accounts could result in a viable system.
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Article Abstract:
The issues presently affecting the US Social Security system need a thorough look through if effective reforms are to be institutionalized. The retired public's need for Social Security has made the issue of the system's reform an important pillar of American politics. The importance of Social Security reform is reflected in a Benefits Quarterly 1996 Retirement Confidence Survey revealing that 68% of the population viewed entitlement programs unfavorably, versus only 22% who saw entitlement plans as favorable.
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