Tag: Social Security
Abstract Cutting pensions for the elderly is a difficult task for any government. The elderly are a large, politically active group, and they are viewed sympathetically by the rest of the electorate. In pension programs that are based on a system of contributory social insurance, a sense that benefits have been “earned” adds to recipients’…
Introduction Over the long term, stocks have earned a higher rate of return than Treasury bonds. Therefore, many recent proposals to reform Social Security include a stock investment component. In evaluating these proposals, the Social Security Administration’s Office of the Actuary (OACT) has generally used a 7.0 percent real return for stocks (based on a…
