Social Security investment in equities ILinear case

Social Security investment in equities I

Linear case

Diamond

Peter

Diamond, Peter

Author

Geanakoplos

John

Geanakoplos, John

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College19991999monographic

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

1999

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

Among the elderly, Social Security income is distributed very differently than private pension and asset income. For the bottom quintile of the income distribution, 81 percent of income comes from Social Security, while only 6 percent is from pensions plus income from assets. For the top quintile, 23 percent comes from Social Security, while 46 percent is from pensions and assets - dramatically different percentages. Similarly, there are great differences in saving and investing among current workers. Among all those who were paying social security taxes in 1995, fully 59% held no stock, either directly or through pension plans. Even among those between 45 and 54 years of age, 50% held no stock, directly or indirectly. These differences have important implications for the proposal to invest part of Social Security trust fund reserves in private securities.

Peter Diamond and John Geanakoplos.

CRR WP1999-2

CRR WP

1999-2

http://crr.bc.edu/images/stories/Working_Papers/wp_1999-02.pdf

MChBEnglisheng

MChB

Englisheng

English

eng