Removing the Disincentives for Long Careers in the Social Security and Medicare Benefit Structure
AbstractWhen Social Security was instituted in 1935, the period life expectancy at age 20 for males was 66 and for females 69. Today, 20-year-old males have a period life expectancy of 76 and females, 80. This increase in life expectancy has been accompanied by a corresponding improvement in health at all ages. Cutler, Liebman, and Smyth (2005) find that, in terms of mortality, men at age 68 in 2000 have roughly the same mortality risk as men at age 62 in 1960. Thus, at a same age, men in the year 2000 are roughly six years younger. In terms of self assessed health status, they find that the difference is even larger, approximately ten years. Their bottom line is, “Our best guess is that people aged 62 in the 1960s are in equivalent health to people aged 70 or more today.” In related work, Shoven (2004) suggested that the age of elderly people is more appropriately measured by remaining life expectancy than by years since birth. In his most recent work, Shoven (2007) introduces the concept of “real ages” in contrast to “nominal ages” with real ages depending on mortality risk rather than years since birth.
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Bibliographic InfoPaper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 08-058.
Date of creation: Nov 2008
Date of revision:
Social Security; Real Age; life expectancy;
Find related papers by JEL classification:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary Burtless & Joseph F. Quinn, 2002.
"Is Working Longer the Answer for an Aging Workforce?,"
Issues in Brief
ib2002-11, Center for Retirement Research, revised Dec 2002.
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- David C. Stapleton, 2009. "Employment Support for the Transition to Retirement: Can a New Program Help Older Workers Continue to Work and Protect Those Who Cannot?," Mathematica Policy Research Reports 6248, Mathematica Policy Research.
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