scholarly journals The consequences of claiming Social Security benefits at age 62

2021 ◽  
pp. 1-27
Author(s):  
Philip Armour ◽  
David Knapp
Keyword(s):  
Social Security ◽  
Old Age ◽  
Public Discourse ◽  
Financial Hardship ◽  
Lower Income ◽  
The Difference ◽  
Financial Characteristics ◽  
Social Security Benefits ◽  
Old Age Benefits

Abstract Delaying claiming of Social Security old-age benefits past the earliest eligibility age, age 62, raises the monthly benefit for a person's life. Despite arguments from both proponents and opponents of delayed claiming in academia and public discourse, little is known about whether claiming decisions lead to substantively different outcomes. We compare differences in outcomes between age-62 claimants and otherwise similar later claimants that are matched on health, employment, and financial characteristics at age 60. We find that age-62 claimers are substantially less likely to work after 62 and have persistently lower income into their 70s. Differences in assets emerged in the 70s, with early claimants having lower wealth, but we find no differences in mortality or self-reported financial hardship. The difference in wealth is driven primarily by a growth in wealth among later claimants rather than substantial decumulation by age-62 claimants.

scholarly journals The contribution of changes to tax and social security to stalled life expectancy trends in Scotland: a modelling study

2020 ◽  
pp. jech-2020-214770
Author(s):  
Elizabeth Richardson ◽  
Martin Taulbut ◽  
Mark Robinson ◽  
Andrew Pulford ◽  
Gerry McCartney
Keyword(s):  
Life Expectancy ◽  
Social Security ◽  
Tax Credits ◽  
The Difference ◽  
Group Sex ◽  
The Uk ◽  
Social Security Benefits ◽  
The Impact ◽  
Welfare Reforms ◽  
Detrimental Impact

BackgroundLife expectancy (LE) improvements have stalled, and UK tax and welfare ‘reforms’ have been proposed as a cause. We estimated the effects of tax and welfare reforms from 2010/2011 to 2021/2022 on LE and inequalities in LE in Scotland.MethodsWe applied a published estimate of the cumulative income impact of the reforms to the households within Scottish Index of Multiple Deprivation (SIMD) quintiles. We estimated the impact on LE by applying a rate ratio for the impact of income on mortality rates (by age group, sex and SIMD quintile) and calculating the difference between inflation-only changes in benefits and the reforms.ResultsWe estimated that changes to household income resulting from the reforms would result in an additional 1041 (+3.7%) female deaths and 1013 (+3.8%) male deaths. These deaths represent an estimated reduction of female LE from 81.6 years to 81.2 years (−20 weeks), and male LE from 77.6 years to 77.2 years (−23 weeks). Cuts to benefits and tax credits were modelled to have the most detrimental impact on LE, and these were estimated to be most severe in the most deprived areas. The modelled impact on inequalities in LE was widening of the gap between the most and least deprived 20% of areas by a further 21 weeks for females and 23 weeks for males.InterpretationThis study provides further evidence that austerity, in the form of cuts to social security benefits, is likely to be an important cause of stalled LE across the UK.

scholarly journals Migrants’ Access to Social Protection in Belgium

2020 ◽  
pp. 49-63
Author(s):  
Pauline Melin
Keyword(s):  
Social Security ◽  
Old Age ◽  
Social Protection ◽  
Social Security System ◽  
Security System ◽  
Social Benefits ◽  
Minimum Income ◽  
Family Benefits ◽  
Social Security Benefits ◽  
Guaranteed Minimum Income

Abstract Access to social benefits in Belgium is not conditional upon nationality but rather on periods of insurance to the Belgian social security system. Despite the lack of nationality conditions, a number of social benefits are made conditional upon residence of the beneficiary in Belgium. Consequently, even though the Belgian social security system appears, at first sight, as neutral regarding the migration trajectory of its beneficiaries, it might be more difficult for migrants to access, retain and export social security benefits from Belgium when compared to resident nationals. This chapter thus compares the conditions of access to social benefits for nationals and non-nationals residing in Belgium, as well as Belgian citizens residing abroad. It aims to analyse whether migration decisions impact access to and retention of social security benefits. More particularly, the analysis focuses on access to unemployment benefits, healthcare, old-age pensions, family benefits and guaranteed minimum income. Finally, this chapter also questions whether access to social benefits might have a consequence for the residence status of non-nationals in Belgium.

UK

2019 ◽  
pp. 175-191
Author(s):  
Fran Bennett
Keyword(s):  
Social Security ◽  
Old Age ◽  
Financial Hardship ◽  
The Public ◽  
Lone Parents ◽  
Education And Health ◽  
Similar Path ◽  
The Uk ◽  
Families With Children ◽  
Near Future

This chapter shows how the UK tackled the crisis. The UK was affected early and implemented a post-crisis stimulus package quickly. But from 2010, with a new government, austerity was the watchword, with cuts in social security expenditures prioritized over tax increases. Spending on education and health was shielded, as were old-age pensioners’ benefits, but those of families with children were reduced. From 2015 a Conservative majority government continued on a similar path, though also implementing tax cuts and a higher minimum wage. Under the new Prime Minister, the aim of balancing the public finances was postponed. Initially the pain of the crisis was shared more broadly. But financial hardship increased after 2012, especially for lone parents and disabled people, and benefit cuts affected women in particular. Whilst employment has increased, recovery has been slow. It seems unlikely positive welfare state developments can be expected in the near future.

scholarly journals Women and Social Security

1982 ◽  
Vol 6 (2) ◽  
pp. 227-232
Author(s):  
Gail Buchwalter King
Keyword(s):  
Social Security ◽  
Old Age ◽  
Security Policy ◽  
The Elderly ◽  
Married Women ◽  
Never Married ◽  
Social Security Policy ◽  
Social Security Benefits

Recent statistics indicate that 72% of the elderly poor are widowed, divorced, or never-married women. The fact that many of these women are left destitute in their old age can be looked at from several perspectives. My particular interest is in how Social Security policy contributes to the potential poverty of women. The area of investigation is that of dependency—the designated category through which most women collect Social Security benefits.

scholarly journals How Much Should the Poor Save for Retirement? Data and Simulations on Retirement Income Adequacy among Low-earning Households

2020 ◽  
pp. 167-183
Author(s):  
Andrew G. Biggs
Keyword(s):  
Social Security ◽  
Low Income ◽  
Retirement Income ◽  
Retirement Savings ◽  
Lower Income ◽  
Income Adequacy ◽  
Retirement Saving ◽  
Investment Returns ◽  
Explicit Analysis ◽  
Social Security Benefits

A number of US states have introduced automatic enrollment retirement accounts as a means to raise retirement savings for lower-income households. The presumption is that such households, whose rates of formal retirement saving are low, would benefit from higher saving and higher incomes in retirement. Nevertheless, there has been little explicit analysis of how much lower-income households should save in excess of their social security contributions. There is also little evidence that many current lower-income retirees are unable to maintain their pre-retirement standards of living. To study this issue, this chapter builds a simple model of retirement saving, allowing for the inclusion of social security benefits, different standards of retirement income adequacy, and different assumptions regarding pre- and post-retirement investment returns. Interestingly, low-income retirees express less satisfaction with the adequacy of their retirement incomes than other retirees, but their self-assessed retirement income adequacy has actually increased in recent years. The chapter also shows that, for very low earners, little savings are necessary on top of social security payments.

scholarly journals So No Damn Politician Ever Scrap It: The Constitutional Protection of Social Security Benefits

2004 ◽  
Vol 65 (4) ◽  
Author(s):  
Matthew H. Hawes
Keyword(s):  
Social Security ◽  
Old Age ◽  
Pension System ◽  
Constitutional Protection ◽  
Political Compromise ◽  
Social Security Benefits ◽  
Political Right

Is the nation’s old-age pension system bankrupt? Each year brings repeated warnings of a need for immediate reform. Yet somehow, reasonable people and even experts dispute both the severity of the crises and the scope of the reforms, if any, that ought to be taken. Completely overlooked in the debate, however, are the legal and even constitutional limits to any reformation plan. President Roosevelt intended to create a program that would withstand political compromise—a program that would create a “legal, moral, and political right” to the receipt of benefits. Nearly seventy years after Social Security’s creation, we must ask: Did Roosevelt succeed?

scholarly journals Disclosable, but not Necessarily Fatal? Welfare Overpayments in the Uncertain Landscape of Fitness for Practice

2017 ◽  
Vol 40 (3) ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Social Security ◽  
Financial Hardship ◽  
Automated Systems ◽  
Welfare Benefits ◽  
Wide Range ◽  
Media Reports ◽  
Social Security Benefits ◽  
Course Of Study

Recently, media reports and a Senate Inquiry raised the issue of widespread errors by Centrelink in sending out µdebt recovery’ letters to recipients of social security benefits alleging overpayments. Even in the absence of automated systems, overpayments arise under a wide range of circumstances in relation to welfare benefits accessed by students either before or during the course of study, ranging from administrative errors by Centrelink to calculated fraud by the recipient. Most overpayments exist against a background of financial hardship or troubled personal circumstances.

scholarly journals Optimizing Social Security Benefits: Strategies For Married Couples With Above Average Age Differences And With Ratios Of Primary Insurance Amounts Of 0.5 Or Better

2013 ◽  
Vol 11 (2) ◽  
pp. 59
Author(s):  
Fred Hebein
Keyword(s):  
Social Security ◽  
Age Differences ◽  
Life Time ◽  
Married Couples ◽  
Analytical Framework ◽  
Age Difference ◽  
Optimization Strategy ◽  
The Difference ◽  
The Individual ◽  
Social Security Benefits

The complex rules and inter-related choices regarding spousal and survivor benefits imbedded in the social security system make the optimization of lifetime benefits for married couples a complex decision which can reduce or increase lifetime benefits significantlyeven hundreds of thousand dollars. This paper focuses on strategies for couples with above average age differences and with ratios of Primary Insurance Amount (PIA) of 0.5 or better. In regards to age differences, about 40% of marriages have 4 or more years in age difference between spouses. The difference of four or more years is important because it means that one spouse is at or past full retirement age (FRA) when the other spouse becomes 62. Since both spouses must be eligible for regular social security benefits (past 62 years of age) to jointly execute an optimization strategy, the time period to execute strategies for couples is reduced by above average age differences. This paper evaluates the financial benefits of three major strategies for couples with above average age differences and with PIA ratios of 0.5 or more: (1) Use Restricted application for spousal benefits; (2) Delay start of benefits until one spouse has reached 70 years of age; and; (3) Early start for benefits as soon as the youngest spouse reaches 62 years of age. Each strategy is affected by the differences of age between the individual spouses, their individual work records (PIA ratio), and their individual life expectancies. The analytical framework presented in this paper illustrates that couples can increase life time benefits by hundreds of thousands of dollars by choosing the appropriate strategy.

Irrational Expectations, Future Social Security Benefits, and Life Cycle Planning

2019 ◽  
Keyword(s):  
United States ◽  
Social Security ◽  
Rational Expectations ◽  
The United States ◽  
Economic Behavior ◽  
Security Research ◽  
Social Security Programs ◽  
The Difference ◽  
Social Security Benefits ◽  
The Impact

An extensive amount of literature examines the impact of expectations on economic behavior at both the micro and macro level. In the area of individual financial security, research taking into account the difference between rational expectations and actual behavioral expectations regarding asset returns, inflation, savings, and spending has contributed to better understanding and improved program design. In contrast, relatively little attention has been paid to workers’ expectations of their future Social Security benefits. Because Social Security benefits are an important source of retirement income for most workers in many countries, future Social Security benefit expectations presumably play an important role in their consumption, saving, labor supply, and portfolio investment decisions. This article surveys the literature relating to these expectations and presents evidence of workers’ expectations of future Social Security benefits in Canada, Ireland, and the United States. In all three countries, with differing systems of financing and differing politics concerning the programs, surveys find a surprising degree of pessimism and lack of trust in Social Security programs. Although rhetoric in the United States about Social Security being “broken” may be part of the explanation there, such rhetoric is not present in Canada and Ireland.

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