APPLICABILITY OF THE NOTIONAL DEFINED CONTRIBUTION (NDC) MODEL IN UNITED STATES SOCIAL SECURITY: COMPARING THE NDC MODEL AND THE DEFINED BENEFIT MODEL

다국어 초록 (Multilingual Abstract)

This paper accounts for the necessity of structural reform and examines the notional defined contribution (NDC) model against the defined benefit (DB) model in the U.S. pension system. This study comes up with a robust NDC on the basis of population and financial sustainability. On the individual level, this article calculates the new optimum premium rate and the income replacement rate when the old-age pension is converted to NDC.
Second, we present several scenarios for forecasting the long-term sustainability of Social Security, depending on a macro-level actuarial analysis.

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