Does the Rise in the Full Retirement Age Encourage Disability Benefits Applications? Evidence from the Health and Retirement Study

TitleDoes the Rise in the Full Retirement Age Encourage Disability Benefits Applications? Evidence from the Health and Retirement Study
Publication TypeReport
Year of Publication2008
AuthorsLi, X, Maestas, N
InstitutionAnn Arbor, University of Michigan
KeywordsDisabilities, Public Policy, Retirement Planning and Satisfaction, Social Security
Abstract

As the Social Security full retirement age rises, the relative generosity of Social Security retirement benefits compared to disability benefits is declining, raising the incentive for insured people to apply for disability benefits. After controlling for other differences in observable characteristics, such as life-time earnings, we find that an average four month increase in the FRA slightly increases the two-year DI application rate by 0.04-0.30 percentage points. The effect is greater among those with a work limiting health problem (0.22-0.89 percentage points)

URLhttp://www.mrrc.isr.umich.edu/publications/papers/pdf/wp198.pdf
Endnote Keywords

social Security/disability benefits/retirement planning/Public Policy

Endnote ID

69818

Citation Key5737