Northwood Economist Examines the Future of Social Security
As concerns grow about the long-term sustainability of Social Security, a Northwood University professor and alumna are challenging policymakers to reconsider how Americans save for retirement — and whether greater personal ownership could provide a more secure financial future.
In a new article published by the Independent Institute, Northwood University Associate Professor of Economics and Philosophy Dr. Alex Tokarev and Northwood alumna Kristin Tokarev examine the demographic and financial pressures facing Social Security.
Their essay, “The Third Rail Is Dead,” explores how longer life expectancies, declining birth rates and a shrinking ratio of workers to retirees are straining a system established during the Great Depression. The authors argue that continuing to postpone meaningful reform will only make the challenges more difficult to address.
Drawing on Australia’s retirement system, the Tokarevs examine an alternative approach that emphasizes individually owned retirement accounts and long-term investment. They contend that giving workers greater ownership of their retirement savings could help Americans build wealth while reducing dependence on future government promises.
While acknowledging that no retirement system is perfect and that a safety net remains important, the authors encourage policymakers to reconsider traditional approaches to retirement security.