How is Economic Hardship Avoided by Those Retiring Before the Social Security Entitlement Age

TitleHow is Economic Hardship Avoided by Those Retiring Before the Social Security Entitlement Age
Publication TypeReport
Year of Publication2012
AuthorsMilligan, KS
InstitutionCambridge, Mass., National Bureau of Economic Research
KeywordsConsumption and Savings, Income, Public Policy, Retirement Planning and Satisfaction, Social Security, Women and Minorities
Abstract

Governments around the world are reacting to extended lifespans and troubled pension finances by increasing the age of retirement benefit entitlement. One concern that arises is how those who are not working before reaching entitlement age are able to bridge their consumption to the age of entitlement. This paper studies those who retire before the age of full pension entitlement in the United States using data drawn from the Health and Retirement Study. The major finding is that four out of five people who have zero earnings at pre-entitlement ages are able to find a way to lift their incomes over the poverty line. For men, pension and annuity income is important while for women, spousal income helps most to get them over the line. Reaching the early retirement entitlement age at 62 also has a significant impact on poverty avoidance.

Notes

electronic resource

URLhttp://www.nber.org/papers/w18051
Endnote Keywords

Retirement/Retirement Policies/Economics of the Elderly/Economics of the Handicapped/retirement planning/early Retirement/poverty/social Security/entitlement age

Endnote ID

69054

Citation Key5932