Supplemental Transition Accounts for Retirement: A Proposal to Increase Retirement Income Security and Reform Social Security

How best to annuitize defined contribution assets?

“…A number of policy experts have suggested this approach. For example,Koenig, Fichtner, and Gale (2018) proposed a new type of mandatory savings account that workers would be required to use up before receiving Social Security retirement benefits. Vernon (2018) also advocated using a portion of savings to enable delaying Social Security benefits for as long as possible.An advantage of this approach is that it does not require any new legislation, as it neatly fits into the existing Social Security system.…”