Suppose That the Ratio of Retirees to Working Citizens Is

question 17

Essay

Suppose that the ratio of retirees to working citizens is currently 1 to 5, meaning that there are 5 working people for every retiree. Suppose that in thirty years the ratio will change to 1 to 2. If benefits remain the same, what will happen to the contribution rate assuming retirees are provided benefits in a pay-as-you-go system? How much would benefits decrease if the contribution rate remained the same?

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Definitions:

Managing Expectations

The process of communicating and aligning what is achievable or deliverable to avoid misunderstandings or disappointments.

Conflict Management Strategies

Techniques and approaches used to handle disputes and disagreements in a constructive and effective manner.

Assertiveness

The quality of being self-assured and confident without being aggressive, in expressing one's rights, needs, and opinions.

Cooperation

The process of working together towards a common goal, involving mutual assistance and collaboration.