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- Title
Investing Social Security Funds in Stocks.
- Authors
Hammond, P. Brett; Warshawsky, Mark J.
- Abstract
The article reports that the National Social Security reform discussions are now taking seriously the option of equity investment as part of the social security program. One of the first-order concerns about such an approach is whether the sums flowing into the stock market would affect or even overwhelm it. The important distinctions among the basic social security reform plans are the magnitude of the equity investment envisioned by each proposal and whether investments are centrally or individually managed. Another social security reform proposal--the individual accounts plan--would replace a portion of the current defined benefit system with individually directed, centrally managed retirement investment accounts. Starting in 1998. this plan would earmark 1.6% of each worker's social security payroll to be placed in individual defined contribution accounts for him or her. These accounts would be converted by law into payout annuities at retirement.
- Subjects
SOCIAL security; OLD age assistance; DEFINED contribution pension plans; INDIVIDUAL retirement accounts; RETIREMENT income; STOCK exchanges
- Publication
Benefits Quarterly, 1997, Vol 13, Issue 3, p52
- ISSN
8756-1263
- Publication type
Article