Social Security and Marginal Returns to Work Near Retirement
Social Security Issue Paper No. 2009-02
20 Pages Posted: 17 Jul 2009
Date Written: April 15, 2009
Using the Social Security Administration's MINT (Modeling Income in the Near Term) model, this paper calculates the marginal returns to work near retirement, as measured by the increase in benefits associated with an additional year of employment at the end of an individual's work life. With exceptions for certain population subgroups, the analysis finds that marginal returns on Social Security taxes paid near retirement are generally low. The paper also tests the effects on marginal returns of a variety of potential Social Security policy changes designed to improve incentives to work.
Keywords: Social Security, return to work, MINT
JEL Classification: C5, H5
Suggested Citation: Suggested Citation