Trends in the number of workers contributing to the Social Security system and the number of workers drawing benefits from the system suggest that future generations will
A) have more frequent cost-of-living adjustments.
B) see significant improvements in the level of benefits.
C) face a later retirement age in order to qualify for full Social Security benefits.
D) not be allowed to invest in private pension plans.

Question

Quizplus · Accepted Answer

As the number of workers contributing to the Social Security system decreases and the number of workers drawing benefits increases, there will be a strain on the system's finances. To alleviate this strain, policymakers may choose to raise the retirement age in order to qualify for full benefits. This would also be consistent with recent policy changes that have already increased the full retirement age from 65 to 67 for people born in 1960 or later. There is no indication that future generations will have more frequent cost-of-living adjustments, significant improvements in the level of benefits, or be disallowed from investing in private pension plans.

Trends in the Number of Workers Contributing to the Social