scholarly journals Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age

2012 ◽  
Vol 4 (4) ◽  
pp. 41-67 ◽  
Author(s):  
Luc Behaghel ◽  
David M Blau
Keyword(s):  
Social Security ◽  
Loss Aversion ◽  
Strong Evidence ◽  
Cognitive Skills ◽  
Behavioral Responses ◽  
Framing Effects ◽  
Retirement Age ◽  
Reference Dependence ◽  
Social Security Reform ◽  
Retirement Behavior

We use a US Social Security reform as a quasi-experiment to provide evidence on framing effects in retirement behavior. The reform increased the full retirement age (FRA) from 65 to 66 in two-month increments per year of birth. We find strong evidence that the spike in the benefit claiming hazard at 65 moved in lockstep along with the FRA. Results on self-reported retirement and exit from employment go in the same direction. The responsiveness to the new FRA is stronger for people with higher cognitive skills. We interpret the findings as evidence of reference dependence with loss aversion. (JEL D91, H55, J14, J26)

How Sticky Is Retirement Behavior in the U.S.?

2021 ◽  
pp. 1-55
Author(s):  
Manasi Deshpande ◽  
Itzik Fadlon ◽  
Colin Gray
Keyword(s):  
Social Security ◽  
Administrative Data ◽  
Regression Discontinuity ◽  
Cohort Analysis ◽  
Retirement Age ◽  
Regression Discontinuity Design ◽  
Suggestive Evidence ◽  
Research Designs ◽  
Retirement Behavior ◽  
The U.S

Abstract We study how increases in the U.S. Social Security full retirement age (FRA) affect benefit claiming behavior and retirement behavior separately. Using long panels of Social Security administrative data, we implement complementary research designs of a traditional cohort analysis and a regression-discontinuity design. We find that while claiming ages strongly and immediately shift in response to increases in the FRA, retirement ages exhibit persistent “stickiness” at the old FRA of 65. We use several strategies to explore the likely mechanisms behind the stickiness in retirement and find suggestive evidence that employers play a role in workers' responses to the FRA.

China's economic future hinges on pensions overhaul

2015 ◽  
Keyword(s):  
Social Security ◽  
Social Insurance ◽  
Pension System ◽  
Insurance Coverage ◽  
Retirement Age ◽  
Social Security Reform ◽  
Registration System ◽  
Content Type ◽  
The Face ◽  
The Government

Subject Social security reform in China. Significance China's social security system is targeted for reform. Premier Li Keqiang's 'work report' to the National People's Congress (NPC) on March 5 pledged to increase the basic pension, lower premiums for unemployment insurance and centralise the country's fragmented urban pension system. Several days later, human resources minister Yin Weimin said, on the sidelines of the NPC, that the government intends to introduce a plan in 2017 to raise the country's statutory retirement age. Impacts Lower employers' and employees' contribution rates would encourage compliance, and thus coverage, by making contribution more affordable. Statutory retirement ages will have to be raised, in the face of strong public opposition. Increasing the statutory retirement age will have to be accompanied by more job opportunities for middle-aged and elderly workers. The competing interests of different provinces and regions could hamper social security reform. Further relaxation of the household registration system will be needed to expand social insurance coverage.

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