@article {Liu50, author = {Liqun Liu and Andrew J. Rettenmaier and Thomas R. Saving}, title = {Social Security{\textquoteright}s Individual Value and Aggregate Burden}, volume = {3}, number = {1}, pages = {50--66}, year = {2015}, doi = {10.3905/jor.2015.3.1.050}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Using a simple expected utility function, we derive discount-rate adjustments for uncertain future expenditures (costs) and revenues (benefits). We apply these results to the individual{\textquoteright}s valuation of the Social Security contract, to aggregate measures of Social Security{\textquoteright}s obligations, and then to the possibility of a Pareto-improving transition to self-funded retirement savings. Individually, the existing Social Security contract has a negative value for all new entrants to the program. When the value of the program is adjusted for risk, it is possible for a {\textquotedblleft}big bang{\textquotedblright} transition to self-funded retirement savings to be Pareto improving.TOPICS: Social security, retirement}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/3/1/50}, eprint = {https://jor.pm-research.com/content/3/1/50.full.pdf}, journal = {The Journal of Retirement} }