Social Security: Issues in Comparing Rates of Return with Market Investments

摘要

As the Congress and the nation have examined how best to restore the long-term211u001esolvency of the Social Security system, many proposals to restructure the system 211u001eto include individual accounts have been offered. Many who favor individual 211u001eaccount proposals point to the low rates of return that workers can expect from 211u001ethe current system and the opportunity that individual accounts would offer for 211u001eimproving rates of return on retirement contributions. Opponents of individual 211u001eaccounts have taken exception to the usefulness and validity of focusing on rates 211u001eof return. This report provides a discussion of the key issues to consider in 211u001ecomparing Social Security and private market rates of return.