Show simple item record

Equity Implications of the Rising Full Retirement Age and Social Security Communications: An Analysis of Past and Future Disparities in the Economic Security of Retirees

dc.contributor.authorArmour, Philip
dc.contributor.authorAlFakhri, Marwa
dc.contributor.authorDube, Mandlenkosi
dc.date.accessioned2024-07-10T18:07:07Z
dc.date.available2024-07-10T18:07:07Z
dc.date.issued2023-10
dc.identifier.citationArmour, Philip, Marwa AlFakhri, and Mandlenkosi Dube. 2023. “Equity Implications of the Rising Full Retirement Age and Social Security Communications: An Analysis of Past and Future Disparities in the Economic Security of Retirees.” Ann Arbor, MI. University of Michigan Retirement and Disability Research Center (MRDRC) Working Paper; MRDRC WP 2023-481. https://mrdrc.isr.umich.edu/publications/papers/pdf/wp481.pdfen_US
dc.identifier.urihttps://hdl.handle.net/2027.42/194082en
dc.description.abstractThe Social Security Amendments of 1983 raised the full retirement age (FRA), the age at which claimants receive an unreduced monthly benefit, from 65 to 67. However, this change was gradually implemented, with the first increase from 65 to 66 phased-in between 2001 and 2009, and the second increase to 67 currently underway. Given that Social Security benefits have an equalizing effect on the wealth distribution, the rising FRA represents a reduction in retirement wealth borne by the population most reliant on Social Security benefits. In this article, we use the Health and Retirement Study, a nationally representative panel survey of individuals 51 and older in the United States, to estimate how income and wealth varies by race and ethnicity for households facing different FRAs. In particular, we focus on how income and wealth racial/ethnic disparities changed from age 60 to 70 for households with age 65 FRA versus 66 FRAs and provide insight on how the currently rising FRA may affect disparities into retirement. Our central finding is that age 60/61 socioeconomic characteristics explain the vast majority of age 70/71 economic disparities; however, age 60/61 disparities are increasing in more recent cohorts. Social Security income lowers disparities at age 70/71 relative to other income sources, but earnings and capital income disparities remain substantial. Absent policy intervention, our findings suggest racial/ethnic disparities in retirement will widen for workers approaching retirement.en_US
dc.description.sponsorshipThe Social Security Administration through the Michigan Retirement and Disability Research Center award RDR18000002-05, UM23-15en_US
dc.language.isoen_USen_US
dc.relation.ispartofseriesMRDRC WP 2023-481en_US
dc.subjectfull retirement age; retirement wealth; racial/ethnic disparities in retirementen_US
dc.titleEquity Implications of the Rising Full Retirement Age and Social Security Communications: An Analysis of Past and Future Disparities in the Economic Security of Retireesen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelPopulation and Demography
dc.subject.hlbtoplevelSocial Sciences
dc.contributor.affiliationotherRAND Corporationen_US
dc.contributor.affiliationotherRAND Corporationen_US
dc.contributor.affiliationotherRAND Corporationen_US
dc.contributor.affiliationumcampusAnn Arboren_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/194082/1/wp481.pdf
dc.identifier.doihttps://dx.doi.org/10.7302/23527
dc.description.filedescriptionDescription of wp481.pdf : working paper
dc.description.depositorSELFen_US
dc.working.doi10.7302/23527en_US
dc.owningcollnameRetirement and Disability Research Center, Michigan (MRDRC)


Files in this item

Show simple item record

Remediation of Harmful Language

The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.

Accessibility

If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.