The Evolution of Retirement Incentives in the U.S

37 Pages Posted: 19 Nov 2018

See all articles by Courtney Coile

Courtney Coile

Wellesley College; National Bureau of Economic Research (NBER)

Date Written: November 2018

Abstract

Employment rates of older men and women in the U.S. have been rising for the past several decades. Over the same period, there have been significant changes in Social Security and private pensions, which may have contributed to this trend. In this study, we examine how the financial incentive to work at older ages has evolved since 1980 as a result of changes in Social Security and private pensions. We find that the implicit tax on work after age 65 has dropped by about 15 percentage points for a typical worker as a result of Social Security reforms; incorporating the change in private pensions, the decline is larger. We provide suggestive evidence that the evolution of retirement incentives has affected retirement behavior.

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Suggested Citation

Coile, Courtney, The Evolution of Retirement Incentives in the U.S (November 2018). NBER Working Paper No. w25281. Available at SSRN: https://ssrn.com/abstract=3286946

Courtney Coile (Contact Author)

Wellesley College ( email )

106 Central Street
Wellesley, MA 02181
United States
781-283-2408 (Phone)
781-283-2177 (Fax)

National Bureau of Economic Research (NBER)

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