@article {10987, title = {How job changes affect retirement timing by socioeconomic status}, number = {IB$\#$17-3}, year = {2017}, institution = {Center for Retirement Research at Boston College}, address = {Boston}, abstract = {The brief{\textquoteright}s key findings are: Workers in their 50s today, compared to previous generations, are more likely to switch jobs voluntarily. The question is whether such job changes lengthen or shorten a worker{\textquoteright}s career. The results suggest that job changes lengthen careers: those who switch jobs are much more likely to still be in the labor force at age 65 than those who stay put. This effect is somewhat larger for better-educated workers than for less-educated workers.}, keywords = {job changes, Retirement, socioeconomic status}, url = {https://crr.bc.edu/briefs/how-job-changes-affect-retirement-timing-by-socioeconomic-status/}, author = {Geoffrey T. Sanzenbacher and Sass, Steven A. and Gillis, Christopher M.} } @article {10773, title = {Is the Reduction in Older Workers{\textquoteright} Job Tenure a Cause for Concern?}, number = {WP$\#$2010-20}, year = {2010}, institution = {Center for Retirement Research at Boston College}, abstract = {Using data from the Health and Retirement Study (HRS), we analyze trends in voluntary, pressured, and forced quits and risk factors associated with each type of quit. We show that leaving one{\textquoteright}s age-50 job between ages 50 and 56 in any of the above circumstances more than doubles the likelihood that an individual will be working part-time at age 60, relative to a base case of working full-time. Pressured and forced quits also substantially increase the likelihood that the individual will not be working for pay at that age. Statistical tests confirm that pressured quits represent a separate and distinct category with its own risk factors and that they cannot be regarded as a subset of either voluntary or forced quits. }, keywords = {Labor Dynamics, Labor economics, Tenure}, url = {https://crr.bc.edu/working-papers/is-the-reduction-in-older-workers-job-tenure-a-cause-for-concern/}, author = {Anthony Webb and Sass, Steven A.} } @article {7321, title = {Gradual Retirement, Sense of Control, and Retirees{\textquoteright} Happiness}, journal = {Research on Aging}, volume = {31}, year = {2009}, pages = {112}, publisher = {31}, abstract = {The aim of this study was to explore the factors that affect an individual{\textquoteright}s happiness while transitioning into retirement. Recent studies have found that workers often view the idea of gradual retirement as a more attractive alternative than a cold turkey or abrupt retirement. However, there is very little evidence as to whether phasing or cold turkey makes for a happier retirement. Using longitudinal data from the Health and Retirement Study, the authors explored what shapes the change in happiness between the last wave of full employment and the first wave of full retirement. The results suggest that what matters is not the type of transition (gradual retirement or cold turkey) but whether people perceive the transition as chosen or forced.}, keywords = {Employment and Labor Force, Retirement Planning and Satisfaction}, doi = {https://doi.org/10.1177/0164027508324704}, author = {Calvo, Esteban and Haverstick, Kelly and Sass, Steven A.} } @article {10780, title = {Unusual Social Security Claiming Strategies: Costs and Distributional Effects}, number = {WP$\#$2009-17}, year = {2009}, institution = {Center for Retirement Research at Boston College}, abstract = {When to claim Social Security is one of the most important decisions Americans face when approaching retirement. Recently, several unconventional claiming strategies have come to light {\textendash} {\textquotedblleft}Free Loan,{\textquotedblright} {\textquotedblleft}Claim and Suspend,{\textquotedblright} and {\textquotedblleft}Claim Now, Claim More Later{\textquotedblright} {\textendash} that have the potential to pay higher lifetime benefits to some individuals, increasing system costs. In the {\textquotedblleft}Free Loan{\textquotedblright} strategy, an individual can claim benefits at a given age and later repay them and file again, obtaining an increased benefit from the delayed filing. This strategy is equivalent to a {\textquotedblleft}no interest{\textquotedblright} loan from Social Security and could potentially cost the program as much as $11 billion a year. {\textquotedblleft}Claim and Suspend{\textquotedblright} allows an individual to claim benefits and then immediately suspend them, either to put his own benefits on hold if he reenters the workforce or to allow his spouse to claim a spousal benefit while he continues to work and earn delayed retirement credits. The potential cost of allowing couples the option of {\textquotedblleft}Claim and Suspend{\textquotedblright} is about $0.5 billion dollars a year. In the {\textquotedblleft}Claim Now, Claim More Later{\textquotedblright} strategy, a married individual claims a spousal benefit while delaying claiming his own retired worker benefit in order to build up delayed retirement credits. This option could potentially cost Social Security $10 billion a year. Of the three strategies, {\textquotedblleft}Claim and Suspend{\textquotedblright} appears to have the clearest policy rationale as it provides an incentive for individuals to work longer. }, keywords = {Social Security}, url = {https://crr.bc.edu/working-papers/unusual-social-security-claiming-strategies-costs-and-distributional-effects/}, author = {Alicia H. Munnell and Sass, Steven A. and Golub-Sass, Alex and Nadia S. Karamcheva} } @article {10771, title = {An {\textquoteright}Elastic{\textquoteright} Earliest Eligibility Age for Social Security}, number = {IB$\#$8-2}, year = {2008}, institution = {Center for Retirement Research at Boston College}, abstract = {In the early 1980s, Congress responded to the Social Security program{\textquoteright}s long-term financing shortfall, in part, by raising the Full Retirement Age (FRA) from 65 to 67. When fully phased in, for those who turn 62 in 2022, workers will have to wait an additional two years to get the same monthly benefit. If they do not postpone claiming, the increase in the FRA will cut their benefits by about 13 percent. Congress did not change the earliest age at which workers can claim. This Earliest Eligibility Age (EEA) remains 62. When the increase in the FRA is fully phased in, workers who claim at 62 will get 70 percent, rather than 80 percent, of their FRA benefit. This has raised concerns that benefits claimed at the EEA will be too low, especially as retirees age and other sources of income decline. One response would be to raise the EEA from 62 to 64, in line with the two-year rise in the FRA. There are, however, two important objections to an increase in the EEA. The primary concern is that it would create hardship for those unable to work or find employment and who lack the resources to support themselves without working until age 64. A second objection is that raising the EEA is unfair to disadvantaged groups with low life expectancy. This brief addresses these concerns by considering an {\textquotedblleft}Elastic{\textquotedblright} EEA, which gives different workers different earliest eligibility ages.}, keywords = {Social Security, Social Security Eligibility}, url = {https://crr.bc.edu/briefs/an-qelasticq-earliest-eligibility-age-for-social-security/}, author = {Haverstick, Kelly and Margarita Sapozhnikov and Natalia A. Zhivan and Sass, Steven A.} } @article {5712, title = {When Should Married Men Claim Social Security Benefits?}, number = {IB$\#$8-4}, year = {2008}, institution = {Center for Retirement Research at Boston College}, address = {Boston}, abstract = {Most married men claim Social Security benefits at age 62 or 63, well short of the age that maximizes the expected present value of the average household s benefits. That many married men leave money on the table is surprising. It is also problematic. It results in much lower benefits for surviving spouses and the low incomes of elderly widows are a major social problem. If married men delayed claiming Social Security benefits, retirement income security would significantly improve. This brief focuses on the potential gains from delayed claiming and the factors that may influence claiming behavior. It then considers possible policy responses.}, keywords = {Adult children, Public Policy, Retirement Planning and Satisfaction, Social Security}, url = {https://crr.bc.edu/briefs/when-should-married-men-claim-social-security-benefits/}, author = {Sass, Steven A. and Wei Sun and Anthony Webb} } @book {5288, title = {Working longer: The solution to the retirement income challenge}, year = {2008}, note = {Includes bibliographical references (p. 179-200) and index.}, publisher = {Brookings Institution Press}, organization = {Brookings Institution Press}, address = {Washington, D.C.}, abstract = {Investigates the prospects for moving the average retirement age to 66 from 63. Examines companies{\textquoteright} incentives to employ older workers and what government can do to promote continued participation in the workforce. Considers the challenge of ensuring a secure retirement for low-wage workers and those unable to continue to work --Provided by publisher.}, keywords = {Demographics, Employment and Labor Force, Retirement Planning and Satisfaction}, isbn = {978-0-8157-0145-3}, url = {https://www.jstor.org/stable/10.7864/j.ctt6wph6r}, author = {Alicia H. Munnell and Sass, Steven A.} } @article {5686, title = {A Gradual Exit May Not Make for a Happier Retirement}, number = {IB$\#$7-16}, year = {2007}, institution = {Center for Retirement Research at Boston College}, address = {Boston}, abstract = {Workers often say they want to retire gradually. As retirement is a sharp break with life as they know it, it{\textquoteright}s not surprising that many prefer to negotiate the transition a step at a time. Many policymakers also view gradual retirement favorably. They see it as a way to extend careers, shorten retirements, and thereby improve retirement income security. Expanding opportunities for gradual or {\textquotedblleft}phased{\textquotedblright} retirement has thus gained a prominent place on the policy agenda. Workers who say they want to retire gradually, however, are clearly not basing their preference on personal experience. These workers have not retired both ways, concluding that retiring in stages is better. To shed light on this issue, this brief summarizes a new study comparing individuals who retired gradually with those who retired {\textquotedblleft}cold turkey{\textquotedblright} and asks which are happier in retirement. The study uses happiness as the yardstick because it measures realized quality of life; other criteria {\textemdash} such as income, wealth, social status, or health {\textemdash} measure potential quality of life. Greater happiness in retirement is also what workers seem to expect if they exit the labor force gradually{\textellipsis}}, keywords = {Retirement Planning and Satisfaction}, url = {https://crr.bc.edu/briefs/a-gradual-exit-may-not-make-for-a-happier-retirement/}, author = {Calvo, Esteban and Haverstick, Kelly and Sass, Steven A.} } @article {5685, title = {What Makes Retirees Happier: A Gradual or {\textquoteright}Cold Turkey{\textquoteright} Retirement?}, year = {2007}, institution = {Chestnut Hill, MA, Center for Retirement Research at Boston College}, abstract = {This study explores the factors that affect an individual s happiness while transitioning into retirement. Recent studies highlight gradual retirement as an attractive option to older workers as they approach full retirement. However, it is not clear whether phasing or cold turkey makes for a happier retirement. Using longitudinal data from the Health and Retirement Study, this study explores what shapes the change in happiness between the last wave of full employment and the first wave of full retirement. Results suggest that what really matters is not the type of transition (gradual retirement or cold turkey), but whether people perceive the transition as chosen or forced.}, keywords = {Retirement Planning and Satisfaction}, url = {http://crr.bc.edu/}, author = {Calvo, Esteban and Haverstick, Kelly and Sass, Steven A.} } @article {10769, title = {Why Do Married Men Claim Social Security Benefits So Early? Ignorance or Caddishness?}, number = {WP$\#$2007-17}, year = {2007}, institution = {Center for Retirement Research at Boston College}, abstract = {Most married men claim Social Security benefits at age 62 or 63, well short of both Social Security{\textquoteright}s Full Retirement Age and the age that maximizes the household{\textquoteright}s expected present value of benefits (EPVB). This results in a loss of less than 4 percent in household EPBV. But essentially the entire loss is borne by the survivor benefit, falls nearly 20 percent. As many elderly widows have very low incomes, early claiming by married men is a major social problem. Regression results found no association between early claiming and caddishness or the ability of husbands to make claiming decisions independently. The one statistically significant finding is the association of college education and later claiming, which cautiously take to indicate greater financial awareness. This suggests that an effective educational campaign might be able to raise the claiming ages of married men and improve widows{\textquoteright} retirement income security. But financial education has not been especially effective in changing behavior. Policymakers should thus consider other initiatives to assure a survivor benefit greater than that produced by an age 62 or 63 husbands{\textquoteright} claiming age. Such initiatives include raising the Earliest Eligibility Age, requiring spousal consent for claiming prior to the Full Retirement Age, and preserving the survivor benefit at its Full Retirement Age value and allowing the higher-earning spouse to access only a portion of his (or her) Primary Insured Amount prior to the Full Retirement Age.}, keywords = {Social Security, Social Security Benefits}, url = {https://crr.bc.edu/working-papers/why-do-married-men-claim-social-security-benefits-so-early-ignorance-or-caddishness/}, author = {Anthony Webb and Wei Sun and Sass, Steven A.} }