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Effects of Social Security Policies on Benefit Claiming, Retirement and Saving

Listed author(s):
  • Alan L. Gustman
  • Thomas L. Steinmeier

An enhanced version of a structural model jointly explains benefit claiming, wealth and retirement, including reversals from states of lesser to greater work. The model includes stochastic returns on assets. Estimated with Health and Retirement Study data, it does a better job of predicting claiming than previous versions. Alternative beliefs about the future of Social Security affect predicted outcomes. Effects of three potential policies are also examined: increasing the early entitlement age, increasing the full retirement age, and eliminating the payroll tax for seniors. Predicted responses to increasing the full entitlement age are sensitive to beliefs.

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File URL: http://www.nber.org/papers/w19071.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19071.

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Date of creation: May 2013
Publication status: published as Gustman, Alan L. & Steinmeier, Thomas L., 2015. "Effects of social security policies on benefit claiming, retirement and saving," Journal of Public Economics, Elsevier, vol. 129(C), pages 51-62.
Handle: RePEc:nbr:nberwo:19071
Note: AG LS PE
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