FInancial Outlook on Social Security Pensions Research Paper

FInancial Outlook on Social Security Pensions - Research Paper Example This takes place at the macro level. Personal retirement savings accounts were established into Ireland through in 2002 through the Pensions Act. These accounts are long term individual accounts that have been designed to help people save for their retirement in an elastic manner (Attanasio 3). The significance of security savings especially for those people with no pension provisions exist. With a personal retirement savings accounts, a person can change their employment and continue using the same account. It is also possible to change from one savings account to another at any time without charges. The two main different types of personal retirement savings account are all aimed at improving the financial security of individuals. These two are; standard personal retirement savings accounts and the non-standard savings accounts. The principle difference between the two saving accounts is on the charges. Moreover, there are restrictions on the type of property that the standard savi ngs account can invest in. They only invest in joint funds where the hazard is extended on huge number and diversity of investments. However, the standard savings account meets the requirements of most people. The non-standard savings accounts tender broader investment alternatives. ... The accounting methods used to estimate their liabilities assume that better planning can earn higher investments with reduced risks. It is likely that plan assets could fall short. In such a case, taxpayers are expected to make up for the difference. However, the taxpayer guarantee value is not disclosed. While states recognize underfunded social security pensions, it is evident that the situation is worse than it is demonstrated by their accounting. If proactive steps are not taken therefore, taxpayers will be forced to cover huge shortfalls (Aguila 39). From such an analysis, it is evident that the financial outlook on social security pension practices is inaccurate. This is because the shortfalls exceed explicit state debts. It is, therefore, arguable that pension benefits, contributions, and retirement ages must be transformed. However, this may be difficult until accurate accounting systems are adopted. It is evident that the social security programs are currently experiencing financial problems. There has, therefore, been the question on social security policy on the retirement behavior of incentive programs. The role of private pension programs has been growing over the past few years. It is, there, important to review and monitor their performance in an international framework especially with the 2008 financial market crisis (Aguila 39). Rapid decline in labor participation of men has been a striking phenomenon especially in the second half of the twentieth century. A lot has been documented on causes of this trend amongst older men. Presently, through life-cycle model of saving, individuals get the opportunity to design consumption and saving plans through the assumed perfect information. Statistics, however, proof that many workers in the U.S. lack