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In Money, We Survive: The Effects of Social Security Retirement Income on Longevity

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  • Hamid Noghanibehambari
  • Jason Fletcher

Abstract

An old and debated line of research examines the income-mortality relationship and finds mixed evidence. In this paper, we re-evaluate previous studies using a new dataset and implementing a difference-in-difference model based on a Notch in Social Security retirement benefits to overcome selection and endogeneity issues. We employ Social Security Administration death records and find a positive income-longevity relationship. Moreover, we find more pronounced effects among low-educated individuals and people from low socioeconomic status families. Analyses using census data suggest that part of the reductions in retirement income are offset by wage income due to post-retirement labor force participation. Past age 80, the net adverse effects of the policy on both income and longevity become more pronounced.

Suggested Citation

  • Hamid Noghanibehambari & Jason Fletcher, 2025. "In Money, We Survive: The Effects of Social Security Retirement Income on Longevity," NBER Working Papers 34199, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34199
    Note: AG DAE EH PE
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    More about this item

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J1 - Labor and Demographic Economics - - Demographic Economics

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