Retirement Effects of Proposals by the President's Commision to Strengthen Social Security

49 Pages Posted: 14 Oct 2003 Last revised: 20 Oct 2003

See all articles by Alan L. Gustman

Alan L. Gustman

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER)

Thomas L. Steinmeier

Texas Tech University - Department of Economics and Geography

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Date Written: October 2003

Abstract

A structural dynamic model of retirement and saving is used to simulate the retirement effects of proposals made by the President's Commission to Strengthen Social Security. Provisions reducing the growth in real benefits and increasing actuarial incentives to work reduce retirements. They more than offset increases in retirements caused by individual accounts, increased benefits for low wage workers and survivors, and reductions in the top AIME bracket. By 2075, the Commission's proposals would reduce retirements at age 62 by roughly 4 percentage points, mitigating an 8.7 percentage point trend to earlier retirement projected to reassert itself after its recent interruption.

Suggested Citation

Gustman, Alan L. and Steinmeier, Thomas L., Retirement Effects of Proposals by the President's Commision to Strengthen Social Security (October 2003). NBER Working Paper No. w10030, Available at SSRN: https://ssrn.com/abstract=457552

Alan L. Gustman (Contact Author)

Dartmouth College - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Thomas L. Steinmeier

Texas Tech University - Department of Economics and Geography ( email )

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United States
806-742-2201 (Phone)

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