Email this article Financial stability risks of the U.S. social security system
- Authors: Lebedeva L.F.1
-
Affiliations:
- Georgy Arbatov Institute for U.S. and Canada Studies Russian Academy of Sciences (ISKRAN)
- Issue: No 5 (2023)
- Pages: 56-66
- Section: Articles
- URL: https://journals.rcsi.science/2686-6730/article/view/144813
- DOI: https://doi.org/10.31857/S2686673023050085
- EDN: https://elibrary.ru/CJFXCL
- ID: 144813
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Abstract
The Social Security program, playing a vital role in reducing poverty among the old aged groups, is facing growing challenges. While the population age structure has been shifting towards an old aged-dependent, the volume of pension benefits has turned to exceed payroll taxes as a financial source of the pension system. The paper points out the role of public pensions as a source of income, especially important for the low-income Americans. Increasing self-sufficiency of the retired persons, their ability to support families; Social Security funds are at the risk of shrinking financial reserves. While payroll tax revenues have increased over the long period; they are not expected to be enough for funding pension benefits after the third decade; if payroll tax stays as it is, without being raised.
Keywords
About the authors
Liudmila F. Lebedeva
Georgy Arbatov Institute for U.S. and Canada Studies Russian Academy of Sciences (ISKRAN)
Email: l.lebedeva@iskran.ru
Moscow, Russian Federation
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