Removing the Disincentives for Long Careers in the Social Security and Medicare Benefit Structure
When 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.
|Date of creation:||Nov 2008|
|Date of revision:|
|Contact details of provider:|| Postal: 366 Galvez Street, Stanford, California 94305-6015|
Phone: (650) 725-1874
Fax: (650) 723-8611
Web page: http://siepr.stanford.edu
More information through EDIRC
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.:
- Martin Feldstein & Andrew Samwick, 1992.
"Social Security Rules and Marginal Tax Rates,"
NBER Working Papers
3962, National Bureau of Economic Research, Inc.
- 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.
- Gary Burtless & Joseph F. Quinn, 2002. "Is Working Longer the Answer for an Aging Workforce?," Boston College Working Papers in Economics 550, Boston College Department of Economics.
- Robert Fenge & Silke Uebelmesser & Martin Werding, 2002. "Second-best Properties of Implicit Social Security Taxes: Theory and Empirical Evidence," CESifo Working Paper Series 743, CESifo Group Munich.
- Jonathan Gruber & David Wise, 1997. "Social Security Programs and Retirement Around the World: Introduction and Summary of Papers by..," NBER Working Papers 6134, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:sip:dpaper:08-058. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Shor)
If references are entirely missing, you can add them using this form.