The power of working longer

2019 ◽  
Vol 18 (04) ◽  
pp. 623-644 ◽  
Author(s):  
Gila Bronshtein ◽  
Jason Scott ◽  
John B. Shoven ◽  
Sita Nataraj Slavov
Keyword(s):  
Basic Result ◽  
Married Couples ◽  
Standard Of Living ◽  
Relative Power ◽  
Income Levels ◽  
Labor Earnings ◽  
Retirement Saving ◽  
Wide Range ◽  
Social Security Benefits ◽  
Retirement Study

AbstractThis paper compares the relative strengths of working longer vs. saving more in terms of increasing a household's affordable, sustainable standard of living in retirement. Both stylized households and actual households from the Health and Retirement Study are examined. We assume that workers commence Social Security benefits when they retire. The basic result is that delaying retirement by 3–6 months has the same impact on the retirement standard of living as saving an additional one-percentage point of labor earnings for 30 years. The relative power of saving more is even lower if the decision to increase saving is made later in the work life. For instance, increasing retirement saving by one percentage point 10 years before retirement has the same impact on the sustainable retirement standard of living as working between 1 and 2 months longer. The calculations of the relative power of working longer and saving more are done for a wide range of realized rates of returns on saving, for households with different income levels, and for singles as well as married couples. The results are quite invariant to these circumstances.

scholarly journals On Exact Sampling of Nonnegative Infinitely Divisible Random Variables

2012 ◽  
Vol 44 (3) ◽  
pp. 842-873 ◽  
Author(s):  
Zhiyi Chi
Keyword(s):  
Basic Result ◽  
Random Variables ◽  
Random Variable ◽  
Fixed Number ◽  
Rejection Sampling ◽  
Infinitely Divisible ◽  
Exact Sampling ◽  
Special Cases ◽  
Wide Range ◽  
Lévy Density

Nonnegative infinitely divisible (i.d.) random variables form an important class of random variables. However, when this type of random variable is specified via Lévy densities that have infinite integrals on (0, ∞), except for some special cases, exact sampling is unknown. We present a method that can sample a rather wide range of such i.d. random variables. A basic result is that, for any nonnegative i.d. random variable X with its Lévy density explicitly specified, if its distribution conditional on X ≤ r can be sampled exactly, where r > 0 is any fixed number, then X can be sampled exactly using rejection sampling, without knowing the explicit expression of the density of X. We show that variations of the result can be used to sample various nonnegative i.d. random variables.

scholarly journals Older peoples' willingness to delay social security claiming

2020 ◽  
pp. 1-16
Author(s):  
Raimond Maurer ◽  
Olivia S. Mitchell
Keyword(s):  
Social Security ◽  
Older Persons ◽  
Current System ◽  
Work Requirement ◽  
Lump Sum ◽  
Average Household Income ◽  
Time Work ◽  
Part Time ◽  
Social Security Benefits ◽  
Retirement Study

Abstract We have designed and implemented an experimental module in the 2014 Health and Retirement Study to measure older persons' willingness to defer claiming of Social Security benefits. Under the current system’ status quo where delaying claiming boosts eventual benefits, we show that 46% of the respondents would delay claiming and work longer. If respondents were instead offered an actuarially fair lump sum payment instead of higher lifelong benefits, about 56% indicate they would delay claiming. Without a work requirement, the average amount needed to induce delayed claiming is only $60,400, while when part-time work is stipulated, the amount is slightly higher, $66,700. This small difference implies a low utility value of leisure foregone, of under 20% of average household income.

scholarly journals The Economic Consequences of Gray Divorce for Women and Men

2020 ◽  
Author(s):  
I-Fen Lin ◽  
Susan L Brown
Keyword(s):  
Gender Gap ◽  
Divorce Rate ◽  
Well Being ◽  
Economic Consequences ◽  
Standard Of Living ◽  
Economic Disadvantage ◽  
Economic Costs ◽  
Random Effects Models ◽  
Retirement Study ◽  
Economic Well Being

Abstract Objectives Gray divorce, which describes divorce among persons aged 50 and older, is increasingly common reflecting the doubling of the gray divorce rate since 1990. Yet, surprisingly little is known about the consequences of gray divorce and in particular how women and men fare economically during the aftermath. Method Using longitudinal data from the 2004–2014 Health and Retirement Study, we estimated hybrid fixed/random-effects models comparing women’s and men’s economic well-being prior to, during, and following gray divorce and subsequent repartnering. Results Women experienced a 45% decline in their standard of living (measured by an income-to-needs ratio), whereas men’s dropped by just 21%. These declines persisted over time for men, and only reversed for women following repartnering, which essentially offset women’s losses associated with gray divorce. No gender gap emerged for changes in wealth following divorce with both women and men experiencing roughly a 50% drop. Similarly, repartnering was ameliorative only for women’s wealth. Discussion Gray divorce is often financially devastating, especially for women. Although repartnering seems to reverse most of the economic costs of gray divorce for women, few form new co-residential unions after divorce. This study offers a cautionary tale about the financial aftermath of gray divorce, which is likely to contribute to growing economic disadvantage among older adults.

The State and Future of Blood-Based Biomarkers in the Health and Retirement Study

2011 ◽  
Vol 14 (3) ◽  
Author(s):  
Thomas McDade
Keyword(s):  
Survey Design ◽  
Low Cost ◽  
Reproductive Function ◽  
Health And Retirement Study ◽  
Sample Collection ◽  
Advantages And Disadvantages ◽  
Methods Development ◽  
Wide Range ◽  
Primary Focus ◽  
Retirement Study

The Health and Retirement Study (HRS) is an important national resource for policy makers and investigators across a wide range of disciplines, and it is critical that the study collects the best information possible on the health status of its participants within the constraints of the survey design, and without compromising the integrity of the sample. Potential directions for the collection and analysis of biomarker data in future waves of HRS are discussed, with a primary focus on blood-based biomarkers. Advantages and disadvantages of various methods for collecting blood in the home are considered, with particular attention given to the strengths and weaknesses of dried blood spot (DBS) sampling. DBS sampling has been widely applied in recent biosocial surveys due to the low cost and burden associated with sample collection, but these benefits need to be weighed against challenges associated with quantification in the laboratory. Attention is also given to additional biomarkers that may be of relevance to HRS, and that would expand the survey’s current focus on obesity and metabolic syndrome. Measures of inflammation, pathogen exposure, reproductive function, stress, and epigenetic modifications are suggested as potentially productive future directions for the study. In addition, the analysis concludes with the following recommendations for HRS: Continue to collect DBS samples, but consider alternatives; implement enhanced procedures for quality control; calibrate DBS results against plasma values, and invest in methods development.

scholarly journals Retirement Saving and Decumulation in a Persistent Low-Return Environment

2018 ◽  
Author(s):  
Jason J. Fichtner ◽  
Jason S. Seligman
Keyword(s):  
Interest Rate ◽  
Social Security ◽  
Interest Rates ◽  
Asset Allocation ◽  
Management Strategies ◽  
Wealth Management ◽  
Retirement Saving ◽  
Rate Environment ◽  
Alternative Responses ◽  
Retirement Study

The current retirement environment presents challenges, not only over the period for which interest rates remain low, but also once interest rates appreciably increase. This chapter addresses two related questions: first, how have households responded to the current low interest rate environment, and second, are there alternative responses or investments which households might do well to consider? We employ the Health and Retirement Study to first investigate impacts of the low interest rate on savings, wealth, and asset allocation. We also report on a subset of households who were relatively successful at building and preserving wealth over this period. Following this, we consider alternative portfolio and wealth management strategies targeting increases in equities and delayed claiming of Social Security in terms of their potential to add value in persistent low return environments.

Late Career Job Loss and Retirement Behavior of Couples

2016 ◽  
Vol 39 (1) ◽  
pp. 7-28 ◽  
Author(s):  
Ajin Lee
Keyword(s):  
Social Security ◽  
Job Loss ◽  
Health And Retirement Study ◽  
Budget Constraints ◽  
Unexpected Earnings ◽  
Retirement Behavior ◽  
Using Data ◽  
Social Security Benefits ◽  
The Impact ◽  
Retirement Study

This article argues that wealth uncertainty influences when couples choose to retire. Using data from the Health and Retirement Study, I show that wives delay retirement when their husbands retire following a job loss. This effect is stronger when husbands are the primary earners, and couples are relatively poorer. This provides evidence of intra-household insurance that mitigates the impact of an unexpected earnings shock. I find that wives tend to delay retirement only until they become eligible for social security. This suggests that social security benefits can relax households’ budget constraints and allow wives to join their husbands in retirement.

Earnings, Poor Relief and the Economy of Makeshifts: Bedfordshire in the Early Years of the New Poor Law

Rural History ◽  
2005 ◽  
Vol 16 (1) ◽  
pp. 21-52 ◽  
Author(s):  
SAMANTHA WILLIAMS
Keyword(s):  
Household Income ◽  
Holistic Approach ◽  
Early Years ◽  
Standard Of Living ◽  
Poor Relief ◽  
Poor Law ◽  
The Poor ◽  
Wide Range ◽  
Low Incomes ◽  
Agricultural Labourers

It is increasingly recognised by those engaged in the debate concerning the standard of living of workers during industrialisation that all forms of household income need to be assessed, not just male waged work. A more holistic approach also considers women and children's earnings, poor relief, and the wide range of self-provisioning activities and resources available through the ‘economy of makeshifts’. Over one hundred household budgets of agricultural labourers and their families have been analysed from the Ampthill Union, Bedfordshire, just before and during the implementation of the new poor law in order to further explore and quantify all components to the household income of labouring families in this key transition decade. The article finds that poor relief to families was cut in the wake of the Poor Law Amendment Act. It also finds that the low incomes of families necessitated supplementation through making shift. When the makeshift economy is quantified, it becomes clear that such activities could significantly supplement incomes.

Going It Alone: Advance Directive Discordance in Older Married Couples

2019 ◽  
Vol 39 (12) ◽  
pp. 1274-1283 ◽  
Author(s):  
Catheryn S. Koss ◽  
Donna Jensen
Keyword(s):  
Advance Directive ◽  
Married Couples ◽  
Study Data ◽  
Joint Decision ◽  
Self Rated Health ◽  
Study Results ◽  
Low Education ◽  
Advance Care ◽  
Race Ethnicity ◽  
Retirement Study

Contrary to expectations of joint decision-making, a substantial minority of older married couples report only one spouse possessing an advance directive. Using Health and Retirement Study data, the authors examined advance directive discordance among heterosexual married couples in which at least one spouse had completed an advance directive. It was predicted that spouses who differed in age, self-rated health, or race/ethnicity would be more apt to adopt individualistic as opposed to relational motivational stances, resulting in higher odds of nonmatching advance directive status. Heterogamy did not account for discordance, but couples in which one or both spouses attended some college were more likely to report advance directive concordance. In contrast, couples in which one or both spouses were non-White were more likely to display advance directive discordance. Study results raise concerns about the effectiveness and reach of advance care planning promotion efforts among low-education and non-White older married adults.

In Debt and Approaching Retirement: Claim Social Security or Work Longer?

2018 ◽  
Vol 108 ◽  
pp. 401-406 ◽  
Author(s):  
Barbara A. Butrica ◽  
Nadia S. Karamcheva
Keyword(s):  
Older Adults ◽  
Social Security ◽  
Labor Force ◽  
Social Security Benefit ◽  
Older Americans ◽  
The Past ◽  
Using Data ◽  
Social Security Benefits ◽  
To Receive ◽  
Retirement Study

Over the past couple of decades, older Americans have become considerably more leveraged. This paper considers whether household debt affects the timing of retirement and Social Security benefit claiming. Using data from the Health and Retirement Study, we find that older adults with debt are more likely to work and less likely to receive Social Security benefits than those who are debt-free. Indebted adults are also more likely to delay fully retiring from the labor force and claiming their benefits. Among the sources of debt, mortgages have a stronger impact on older adults' behavior than do other sources of debt.

Thanks, but No Thanks: Unpacking the Relationship Between Relative Power and Gratitude

2021 ◽  
pp. 014616722110259
Author(s):  
Eric M. Anicich ◽  
Alice J. Lee ◽  
Shi Liu
Keyword(s):  
Low Power ◽  
Social Life ◽  
Relative Power ◽  
Psychological Entitlement ◽  
Interpersonal Orientation ◽  
The Social ◽  
Wide Range ◽  
Higher Power ◽  
The Relationship ◽  
Relational History

Power and gratitude are universal features of social life and impact a wide range of intra- and interpersonal outcomes. Drawing on the social distance theory of power, we report four studies that examine how relative power influences feelings and expressions of gratitude. An archival analysis of author acknowledgements in published academic articles ( N = 1,272) revealed that low-power authors expressed more gratitude than high-power authors. A pre-registered experiment ( N = 283) involving live conversations online found that having relatively low power caused increased feelings and expressions of gratitude after benefiting from a favor. Another pre-registered experiment ( N = 356) demonstrated that increased interpersonal orientation among lower power individuals and increased psychological entitlement among higher power individuals drove these effects. Finally, an archival analysis of conversational exchanges ( N = 136,215) among Wikipedia editors revealed that relational history moderated the effect of relative power on gratitude expression. Overall, our findings highlight when and why relative power influences feelings and expressions of gratitude.

Sign in / Sign up

Export Citation Format

Share Document