The Financial and Tax Considerations of Social Security and Early Retirement

2021 ◽  
pp. jwm.2021.1.154
Author(s):  
Stephen Kuselias ◽  
Stephen J. Perreault ◽  
Michael Shafer
2019 ◽  
pp. 313-340
Author(s):  
Ibrahim Alhawarin ◽  
Irene Selwaness

Jordan has undergone a profound social security reform since 2010, primarily aiming to ensure the financial sustainability of the system over time. Using data from the 2010 and 2016 Jordan Labor Market Panel Survey (JLMPS), this chapter examines the dynamics of Jordanian workers’ access to social security and trends in early retirement incidence before and after the reform. The chapter also explores the time it takes to acquire social security coverage on the labor market before and after the reform. Our findings show that the overall incidence of social insurance coverage slightly increased in 2016, for private sector wage workers, irregular wage workers, and non-wage workers (employers and self-employed). Public sector employees were the most likely to acquire social insurance coverage at the start of their jobs, followed by the private sector wage workers inside establishments. Both men and women who started their first job after the 2010 reform experienced a decline in their probability of acquiring social insurance coverage upon their job start. Moreover, the average incidence of early retirement slightly declined among men while still being highly prevalent around ages 40–46.


10.3386/w0204 ◽  
1977 ◽  
Author(s):  
Michael Boskin ◽  
Michael Hurd

1978 ◽  
Vol 10 (3) ◽  
pp. 361-377 ◽  
Author(s):  
Michael J. Boskin ◽  
Michael D. Hurd

2013 ◽  
Vol 13 (2) ◽  
pp. 145-171 ◽  
Author(s):  
EMMA AGUILA

AbstractLabor force participation among Mexican males in their early retirement years (60–64 years of age) has decreased in recent decades, from 94.6% in 1960 to 65.2% in 2010. Similar trends are evident elsewhere in Latin America, and have occurred in the developed world. Such trends pose challenges to the financial sustainability of social security systems as working-age populations decrease and those in retirement increase both because of demographic trends and decisions to take early retirement. In this study, we find that the Mexican social security system provides incentives to retire early. The retirement incentives of the Mexican social security system affect retirement behavior, and may be one of the main contributors to early retirement decisions, particularly for lower-income populations. We simulated the effect of the reform from a pay-as-you-go to the new Personal Retirement Accounts (PRA) system and we find that the PRA system also provides incentives for early retirement. Further analysis is needed to assess the financial sustainability of the social security system and financial security in old age for the largest cohorts in Mexico that will begin to retire by 2040.


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