Policies to Improve the Resiliency of Long-Term Social Security Financing

While Social Security is projected to begin running deficits within the next decade and become insolvent during the early 2040s, a significant degree of uncertainty accompanies these projections. This uncertainty causes some to argue for delay in addressing projected deficits.

Moreover, some proposed reforms would increase uncertainty regarding future system financing. This paper examines policies to index Social Security taxes or benefits to changes in the ratio of workers to beneficiaries, allowing for auto-correction for changing demographic factors that impact system finances. . . .

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Andrew G. Biggs is a resident scholar at AEI.