| |
| |
| |
Centre for Policy on Ageing | |
 | |
|
| Security for social security - is privatization the answer? | | Author(s) | Robert L Brown |
| Journal title | Canadian Journal on Aging, vol 16, no 3, Autumn 1997 |
| Pages | pp 499-518 |
| Keywords | Social security [generally] ; Finance [care] ; Private pensions ; Private enterprise ; Social policy ; Canada. |
| Annotation | The parallels between the funding of an individual pension plan and a pay-as-you-go (PAYG) social security system are presented. In each plan, the total expected value of benefits can exceed the total expected value of contributions. For the individual pre-funded plan, this is true because of the discount factor, representing investment income earnings. For the paygo social security system, the analogous "discount" factor is denoted as the total of real growth rates of the labour force and real productivity gains per worker, that is, real growth in wealth production. The paper presents arguments to show that a fully-funded social security scheme is no more secure than a paygo system. Both schemes rely on the ability of the economy to create and transfer wealth. That is, security for social security does not lie in privatisation. The paper also reviews the Canadian Reform Party's proposals for a "Super RRSP" (registered retirement savings plan) - a privatised replacement for social security - and analyses its advantages and disadvantages. (RH). |
| Accession Number | CPA-980720211 A |
| Classmark | TYA: QC: JK: W4D: TM2: 7S |
Data © Centre for Policy on Ageing |
|
| ...from the Ageinfo database published by Centre for Policy on Ageing. |
| |
|
|