Delayed Retirement and the Growth in Income Inequality at Older Ages

TitleDelayed Retirement and the Growth in Income Inequality at Older Ages
Publication TypeReport
Year of Publication2018
AuthorsJohnson, RW
Date Published02/2018
InstitutionThe Urban Institute
KeywordsIncome inequality, Retirement

As concerns about retirement savings have intensified, many older adults have begun working beyond traditional retirement age. By working longer, they can improve their retirement security by increasing their future monthly Social Security payments and shortening the time they must rely on their savings. But does delaying retirement deepen income inequality for older adults by leaving those with health problems behind?

Delayed retirement can boost financial security but excludes workers with health problems

Employment and income for 62-to-64-year-olds has increased substantially over the past two decades for people in good health. But employment and income have stagnated for older Americans with health problems, who face lower income than their healthier counterparts for the rest of their lives.

To assess how later retirement affects income inequality at older ages, we examined how the relationship between health status, employment, and income has shifted for people eligible for early Social Security retirement benefits but too young to receive full retirement benefits.

Citation Key10353