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One of the Looming Concerns for Some Current Generations and Future

question 70

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One of the looming concerns for some current generations and future generations is that Social Security will run out and post-retirement benefits will not be available to them. One way that lawmakers have proposed to solve this problem is to establish a system in which every worker has their own retirement savings account where a portion of their paycheck goes each pay period. So, instead of going to a pooled retirement fund for everyone to draw from, that money is set aside for that individual upon retirement. What is this proposed plan an example of?


Definitions:

Total Interest

The cumulative amount of interest paid or earned over the life of a loan or investment.

Invested

The exercise of designating funds with the anticipation of achieving financial gains or income.

Cinnamon Buns

Sweet baked goods made from dough containing cinnamon and sugar, often glazed or frosted.

Fund Raiser

An event or campaign organized to collect money for a specific cause or project.

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