Accumulated Pension Collars: A Market Approach to Reducing the Risk of Investment-Based Social Security Reform

@inproceedings{Feldstein2001AccumulatedPC,
  title={Accumulated Pension Collars: A Market Approach to Reducing the Risk of Investment-Based Social Security Reform},
  author={Martin Feldstein and Elena Ranguelova},
  year={2001}
}
This paper shows how a new type of derivative product that could be provided by private financial markets could in principle be used to guarantee that an investment-based Social Security reform provides at least the level of real retirement income that is projected in current Social Security rules. In effect, future retirees could purchase a put option' that guarantees that the future retirement benefit will not fall below the level projected in current Social Security law or some other chosen… CONTINUE READING