Social security, private resources, and the economic security of older Americans

Since the mid-1970s, the Social Security system has become a heated political topic, and some critics have questioned its viability. There may now be an “erosion of confidence” in the system, but it is not at all clear just how serious any problems may actually be with Social Security. It is currently the main resource for many older Americans. Because of vesting and portability problems, pensions are unlikely to be a significant resource for at least half of future retirees, and private savings are a declining resource. Because of its nearly universal coverage and the fact that it does not stand or fall on the existence of a corporate structure, Social Security will continue to be the mainstay of the economic well-being of the older population.