Projects

This proposal takes a dynamic approach to analyze the effect of eliminating the earnings test on retirement expectations and labor supply of those younger than 65. Prior studies have only examined this question for 65-70 year olds, and in a…

There is increasing interest among policy makers in measuring well-being in ways that go beyond purely economic indicators, also with special focus on older individuals who constitute an increasing fraction of the population.  However there is little consensus on which…

Health insurance coverage in the years prior to retirement is particularly important because it protects the household from the financial risks of uninsurance as well as the health consequences of delaying care while uninsured.  While results from the retirement “job…

Social Security must raise taxes or cut benefits, either now or later, to close its $11.1 trillion funding gap. This project measures the welfare effects of alternative adjustments and the costs of delaying the decision. Part 1 uses the Survey…

The extent of the Social Security crisis, defined by the depletion of the trust fund and the long-run sustainability of the system, depends on a set of demographic and economic assumptions. A scenario-based approach is commonly considered in order to…

With the approaching retirement of the baby boom cohort and concerns about the solvency of Social Security, there has been growing interest in understanding savings behavior. Being able to characterize the underlying motivation for savings will be important to researchers…

Annuitization is often considered socially desirable as a payout mode from pension plans, because it provides a lifelong income stream and therefore ensures that retirees will not run out of money. However, myopia and adverse selection may deter annuitization. This…

Proposals for private investment of Social Security contributions predict greater individual returns than would arise under the current system, yet much empirical evidence suggests that many individuals do not make sound investment decisions. To address the future role of social…

Changes in social insurance systems affect the ways in which individuals self-insure against undesirable economic outcomes. One’s ability to work is an important means of self-insurance, and, as policy changes to Social Security are considered that might directly or indirectly…

Many western industrialized countries face strong budgetary pressures due to the aging of the baby boom generations and the general trends in many of these countries toward earlier ages of retirement. The commonality of these problems, however, has the advantage…