Tag: automatic adjustment
When the horse-trading begins on a package to restore financial balance to the Social Security program, one item that should be considered is some form of automatic adjustment mechanism. While the financial implications of the ultimate package will be based on the best assumptions regarding wages, prices, and demographics at the time, these assumptions may…
Abstract As the baby-boom generation enters retirement, a long-forecast funding crisis of the U.S. Social Security system is about to become a reality. Many other high-income countries are faced with similar financial problems within their public pension systems. Some of those countries have adopted legislative measures to reduce their funding deficits, and a few hav…