Date of Award

Winter 3-20-2026

Document Type

Thesis (Master's)

Department or Program

Master of Arts in Liberal Studies

First Advisor

Diederik Vandewalle

Second Advisor

Andrew Samwick

Third Advisor

Donald Pease

Abstract

This thesis proposes the conversion of the Social Security Trust Fund into a sovereign wealth fund (SWF), paired with the phased creation of a mandatory retirement savings system for all working-age Americans. In response to forecasts projecting Trust Fund depletion by 2034, the proposed portfolio shift would diversify assets beyond U.S. Treasuries into global equities, real estate, alternatives, and fixed income, with the goal of enhancing long-term returns while remaining passively managed. While this reform would extend the Fund’s solvency, it is not, on its own, a permanent fix. To ensure structural sustainability beyond the exhaustion date, the thesis proposes a universal auto-enrollment system modeled after global programs like Australia’s Superannuation, Sweden’s Premium Pension, and the U.K.’s auto-enrollment. Contributions would begin at 3% and rise to 6%, supported by a progressive federal match and governed under a TSP-style framework with low-cost index fund options, default lifecycle allocations, and annuitization. Together, these dual reforms form a two-pillar model in which the Trust Fund’s final decade of solvency serves as a transitional runway for younger cohorts to build real market-based retirement savings. This thesis situates the proposal in the context of prior academic research, historical reform efforts, and global sovereign fund practices, emphasizing political durability, intergenerational fairness, and financial transparency as core design principles.

Download

Share

COinS