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- Title
The Market for Individual Annuities and the Reform of Social Security.
- Authors
Warshawsky, Mark J.
- Abstract
The article presents a review of the historical record, economic theories, product types and features available currently in the private market, and empirical evidence on the utilization of life annuity payouts and on the money's worth of immediate fixed annuities indicates that if one of the Social Security reform proposals with individual accounts is implemented, mandatory annuitization is warranted. Policy makers are now beginning to rethink the fundamental assumptions of the Social Security system. The Maintain Benefits proposal, as its name implies, would preserve the current benefit computation and payout structures of the Social Security program. The Individual Accounts proposal would create individual accounts alongside the defined benefit portion of the Social Security system. The other tier of the reformed Social Security program under the Personal Security Accounts proposal would provide a modest flat retirement benefit for full career workers; the benefit would be the same for all full career workers regardless of their earnings history.
- Subjects
SOCIAL security; ECONOMICS; SINGLE premium annuities; RETIREMENT income; LIFE annuities; OLD age assistance
- Publication
Benefits Quarterly, 1997, Vol 13, Issue 3, p66
- ISSN
8756-1263
- Publication type
Article