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Changing the Social Security Rules for Work after 65

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  • Alan L. Gustman
  • Thomas L. Steinmeier

Abstract

This paper simulates the effects of proposed changes in the social security rules, including the elimination of the Retirement Earnings Test, for men who work after normal retirement age. A policy change that was given serious consideration by the Social Security Administration in 1988–89 (and that is similar to other proposals made in Congress and elsewhere since then) is projected to raise long-run costs by $43 billion net of taxes and to induce an increase of 3.5% in the number of full-time male workers between the ages of 65 and 69. The outcome, especially in the short run, is greatly affected by the timing of workers' decisions to apply for benefits.

Suggested Citation

  • Alan L. Gustman & Thomas L. Steinmeier, 1991. "Changing the Social Security Rules for Work after 65," ILR Review, Cornell University, ILR School, vol. 44(4), pages 733-745, July.
    • Handle: RePEc:sae:ilrrev:v:44:y:1991:i:4:p:733-745
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