Social Security
Planning for retirement has always been hard, because people face numerous risks – including outliving their money (longevity risk), investment losses (market risk), unexpected health expenses (health risk), and the erosive impact of rapidly rising prices (inflation risk). Further complicating such planning are possible shifts in the public policy environment: changes to social insurance programs…
Social Security needs modest revenue increases and benefit cuts – not extreme borrowing. Larry Fink of BlackRock, in the Annual Chairman’s Letter to Investors, just endorsed the proposal by Senators Cassidy (R-LA) and Kaine (D-VA) to create a trust fund with borrowed funds to solve Social Security’s financing problems. This idea, which has been around…
