Tag: automatic adjustment

social_security_5

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…

Cheerful senior man at home looking at his mail

The brief’s key findings are: The economic crisis has provided a ‘stress test’ for many pension systems. In Sweden, the crisis triggered an automatic ‘brake’ to restore financial balance and revealed two problems with the brake’s design: it can favor workers over retirees; and it can result in large shocks for retirees. In response, t…