Nobel laureate and behavioral economist Richard Thaler has proposed letting individuals use their 401(k) plans to increase the size of their Social Security checks.
Nobel laureate Richard Thaler has put forward a new idea to allow individuals to use their 401 savings to increase their Social Security benefits.
What you would get in return would be the only indexed annuity that's guaranteed by the federal government at a fair actuarial value, Thaler said. As it stands, Social Security will only be able fund about 80% of promised benefits by 2035, provided Congress does not intervene, it was announced on Monday.
"In general, the Achilles' heel of social insurance programs is once you get everyone in on the same boat, you get problems," Kotlikoff said. "With that caveat, I do like this plan," Kotlikoff said."It has to be compulsory and everybody has to be bought in."Here's what attending a top college is really worthJoe Elsasser, president and founder of Covisum, a provider of Social Security claiming software, also said the plan needs to account for longer life spans and adverse selection.
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