A Widening Gap in Life Expectancy Makes Raising Social Security’s Retirement Age a Particularly Bad Deal for Low-Wage Earnerscharge Social Security with a balancing act. A primary goal is “to provide monthly benefit levels with ... recently, the cost of housing, health care, and long-term care for the elderly is expected to continue ...
Description: The widening gap in life span between high- and low-income Americans may be eroding the progressivity of Social Security retirement benefits. Differential longevity trends have had the effect of raising lifetime benefits for high earners but not for low earners. Social Security’s long-term financial problems result in part from an increase in average life expectancy driven by wealthier people living longer, and, thereby, collecting more benefits. Policymakers should not use funding shortfalls attributable to these trends as an excuse to cut monthly benefits alike for those who have gained (high earners) and for those who haven’t (low earners).Hide
- Authors: Karl Polzer
- Date: Jul 2020
- Competency: Communication; Leadership; Professional Values; Relationship Management; Results-Oriented Solutions; Strategic Insight and Integration; Technical Skills & Analytical Problem Solving
- Publication Name: In The Public Interest
- Topics: Social Insurance
How the American Retirement Savings System Magnifies Wealth Inequalityof my activity has been in health and long term care policy. I have worked for CMS, the National Health ... Washington University and for the American Health Care Association/National Center for Assisted Living ...
Description: This essay explores the role that the emerging defined contribution retirement system may be playing in the growth of wealth inequality in the United States. The current system leaves many Americans with little or no retirement savings. Those with higher accumulation levels appear to invest proportionally more in equities, which may have an exponential effect of balances over long time periods. The author hypothesizes that willingness to take investment risk involves the relationship between the amount an investor has accumulated and what she/he needs in order to cover basic costs of living. This is one reason that investors with greater accumulation levels may be able to earn higher rates of return. The essay concludes by suggesting that the U.S. defined contribution system should include all workers and provide additional fiduciary guidance. Examples reforms, both in the U.S. and other countries, are provided.Hide
- Authors: Karl Polzer
- Date: Feb 2017
- Competency: External Forces & Industry Knowledge; Leadership; Professional Values; Results-Oriented Solutions; Strategic Insight and Integration
- Publication Name: Pension Section News
- Topics: Economics>Behavioral economics; Economics>Financial economics; Enterprise Risk Management>Risk appetite; Pensions & Retirement>Defined contribution and 401k plans; Pensions & Retirement>Risk management; Public Policy