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National Saving and Social Security Reform

  • Andrew Eschtruth


    (Center for Retirement Research at Boston College)

  • Robert Triest


    (Center for Retirement Research at Boston College)

Saving is a critical component of both retirement security for individuals and the long-term growth of the nation’s economy. Current trends in Social Security, 401(k) plans, and personal saving suggest that individuals will need to save more to ensure that they can enjoy a comfortable retirement. The federal government can also contribute to the nation’s saving by reducing or eliminating its budget deficit. Increased saving by either individuals or the government, of course, means less consumption today. But, by providing more money for investment, additional saving boosts productivity and long-term economic growth. Currently, policymakers are discussing possible changes to Social Security that could have significant implications for both the retirement security of today’s workers and for national saving. This Just the Facts examines how various Social Security reforms could affect saving.

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Paper provided by Center for Retirement Research in its series Just the Facts with number jtf_18.

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Length: 6 pages
Date of creation: Apr 2005
Date of revision:
Handle: RePEc:crr:jusfac:jtf_18
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