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Persistent link: https://www.econbiz.de/10011819089
encourage own savings, and capital stock is more than 10 percent higher than in the other two options. The payroll tax increase …
Persistent link: https://www.econbiz.de/10009266746
This paper considers the arguments for fundamental pension reform in Germany and the United States. The two countries have recently made or are considering reforms that would reduce the generosity of the traditional, pay-as-you-go pension system. Some or all of the lost benefits would be...
Persistent link: https://www.econbiz.de/10011399275
The reform of pension systems is on the political agenda in most European countries and in the USA. The paper considers the main factors underlying the reform process and examines the reforms introduced in recent years and those currently under discussion in order to trace common features, but...
Persistent link: https://www.econbiz.de/10013108579
In this paper, we explore the underlying explanations for the under financing of the U.S. Social Security pension system that has persisted since the late 1980s despite repeated calls for reform by the program's trustees and various advisory groups. Both micro and macro estimates of the cost...
Persistent link: https://www.econbiz.de/10012942948
, does not guarantee that retirement savings will be adequate; in fact, many 401(k) plan participants do not take full … few do. Indeed, there has been a significant decline in annuitization of retirement savings by workers. The shift to 401(k … annuities could provide them with very valuable insurance against living too long. How much a household should save for …
Persistent link: https://www.econbiz.de/10013213704
This paper considers the arguments for fundamental pension reform in Germany and the United States. The two countries have recently made or are considering reforms that would reduce the generosity of the traditional, pay-as-you-go pension system. Some or all of the lost benefits would be...
Persistent link: https://www.econbiz.de/10013320882
The United States Social Security Amendments of 1983 (SSA1983) increased the full retirement age (FRA) and increased penalties for retiring before the FRA. This cut to retirement benefits caused spillover effects on Social Security Disability Insurance (SSDI) applications and receipt by making...
Persistent link: https://www.econbiz.de/10013323004
We reconsider the problem of indexation of public pensions, emphasizing that similar contribution paths should imply similar benefit paths. This robustness criterion is only satisfied by full wage indexing, which in turn requires the politically unpopular reduction of the accrual rates. To...
Persistent link: https://www.econbiz.de/10012011566
This paper simulates a transition from the current pay-as-you-go Social Security system to a prefunded system based on Personal Retirement Accounts (PRAs). Annual PRA contributions of 2 percent of taxable payroll earning the historical return on the corporate sector are sufficient to close the...
Persistent link: https://www.econbiz.de/10014038253