IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Gambling with Retirement: Market Risk Implications for Social Security Privatization

Listed author(s):
  • Christian E. Weller

    (Senior Economist, Center for American Progress, 1333 H Street NW, 10th Floor, Washington, D.C. 20005, cweller@americanprogress.org)

Under Social Security privatization, workers would be allowed to divert some of the money that currently goes to Social Security into private accounts. This would expose them to market risk, that is, the risk of a substantial drop in equity prices or of a prolonged bear market. This could result in generations of workers with less money than they thought they would have for retirement. A privatized system could require the government to intervene, for example, by expanding social programs. The primary alternative to a government bailout of the Social Security system, older workers working longer, would create enormous labor market pressures. Other alternatives, such as working longer or diversification, also encounter obstacles. Many middle-class families affected by market risk already save too little for retirement, and optimal diversification may prove too costly for many low- and moderate-income households.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://rrp.sagepub.com/content/38/3/334.abstract
Download Restriction: no

Article provided by Union for Radical Political Economics in its journal Review of Radical Political Economics.

Volume (Year): 38 (2006)
Issue (Month): 3 (September)
Pages: 334-344

as
in new window

Handle: RePEc:sae:reorpe:v:38:y:2006:i:3:p:334-344
Contact details of provider: Web page: http://www.urpe.org/

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:38:y:2006:i:3:p:334-344. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.