November 3, 2013

WE ALL KNOW WHERE WE'RE HEADED:

What America Can Learn from the Faroe Islands about Social Security Reform (Daniel J. Mitchell, Nov 03, 2013, Townhall)

The current government of the Faroe Islands, which includes the People's Party, has modernized its Social Security regime with a system of personal retirement accounts. Starting next January, workers will begin setting aside some of their income to finance a comfortable retirement income. When fully implemented, workers will be putting 15 percent of their income in their accounts, creating a system that's even larger than the private retirement models in Australia andChile.

So why did Faroese politicians take this step? Well, unlike politicians in most nations, they looked at the long-run data, saw that they had an aging population, realized that a tax-and-transfer scheme no longer could work, and decided to reform now instead of waiting for the old system to collapse.

Posted by at November 3, 2013 9:51 AM
  

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