@article {9601, title = {In Debt and Approaching Retirement: Claim Social Security or Work Longer?}, journal = {AEA Papers and Proceedings}, volume = {108}, year = {2018}, month = {05/2018}, pages = {401-406}, chapter = {401}, abstract = {Over the past couple of decades, older Americans have become considerably more leveraged. This paper considers whether household debt affects the timing of retirement and Social Security benefit claiming. Using data from the Health and Retirement Study, we find that older adults with debt are more likely to work and less likely to receive Social Security benefits than those who are debt-free. Indebted adults are also more likely to delay fully retiring from the labor force and claiming their benefits. Among the sources of debt, mortgages have a stronger impact on older adults{\textquoteright} behavior than do other sources of debt. }, keywords = {Debt, Retirement Planning and Satisfaction, Social Security}, issn = {2574-0768}, url = {https://www.aeaweb.org/articles?id=10.1257/pandp.20181116}, author = {Barbara A Butrica and Nadia S. Karamcheva} } @article {8648, title = {Does Social Security Continue to Favor Couples?}, number = {CRR WP 2015-11}, year = {2015}, month = {06/2015}, pages = {1-44}, institution = {Center for Retirement Research at Boston College}, address = {Chestnut Hills, MA}, abstract = {While dramatic increases in women{\textquoteright}s labor supply and earnings have led to a substantial decline in the fraction of women eligible for spouse benefits at retirement, most wives still receive a survivor benefit, as wives still typically have lower earnings than their husbands and live longer. Using the MINT microsimulation model and the HRS data linked with Social Security administrative earnings records, this paper examines the extent to which Social Security continues to favor couples and will do so in the future. The paper finds that while the OASI program still distributes lifetime income from singles to couples, the transfers appear to be shrinking over time. Nevertheless, couples are still projected to have a higher benefit/tax ratio, a lower median net tax rate, and a higher share of them will be receiving positive net transfers from the system as compared to those who are never married or divorced. The increased labor force participation and earnings of women have contributed significantly to the decline in redistribution from men to women, and from singles to couples, while the effect of declining marriage rates has only a modest effect. }, keywords = {Divorce, Marriage, Older Adults, Retirement Planning and Satisfaction, Social Security, Women and Minorities}, url = {http://crr.bc.edu/wp-content/uploads/2015/06/wp_2015-111.pdf}, author = {Nadia S. Karamcheva and April Yanyuan Wu and Alicia H. Munnell} } @article {10492, title = {Does Household Debt Influence the Labor Supply and Benefit Claiming Decisions of Older Americans?}, number = {CRR WP 2013-22}, year = {2013}, month = {12/2013}, institution = {Boston College}, abstract = {Americans{\textquoteright} indebtedness has increased dramatically since the 1980s {\textendash} a trend likely to have important implications for retirement security. This study finds that older adults with debt are 8 percentage points more likely to work and 2 percentage points less likely to receive Social Security benefits than those without debt. Not only does the presence of debt influence older adults{\textquoteright} behavior, but so do the amount and type of debt {\textendash} particularly outstanding mortgages. Increasingly, retirement security will depend on having enough income and assets to pay for basic living expenses and to service debt.}, keywords = {Debt, Labor, Social Security, Social Security Benefits, Social Security linkage}, url = {https://crr.bc.edu/working-papers/does-household-debt-influence-the-labor-supply-and-benefit-claiming-decisions-of-older-americans-2/}, author = {Barbara A Butrica and Nadia S. Karamcheva} } @article {5973, title = {How Do the Changing Labor Supply Behavior and Marriage Patterns of Women Affect Social Security Replacement Rates?}, year = {2013}, institution = {Chestnut Hill, MA, Center for Retirement Research at Boston College}, abstract = {This paper seeks to determine the impact of the changing lives of women increased labor force participation/earnings and reduced marriage rates on Social Security replacement rates. First, our estimates, based on the Health and Retirement Study and Modeling Income in the Near Term, show that Social Security replacement rates have dropped sharply at both the household- and individual-level, and the decline will continue for future retirees. Our second finding is that this aggregate change masks a complex relationship between replacement rates and the marital status and income levels of individuals. The decline in replacement rates over time is largest for married couples with husbands whose earnings are in the top tercile. Decomposing the reasons for the overall decline shows that increases in the labor supply and earnings of women explain more than one-third of the change. In contrast, the impact of changing marital patterns is relatively small. Much of the remaining explanation rests with the increased Full Retirement Age and changing claiming behaviors.}, keywords = {Adult children, Employment and Labor Force, Social Security, Women and Minorities}, author = {April Yanyuan Wu and Nadia S. Karamcheva and Alicia H. Munnell and Patrick J. Purcell} } @article {5924, title = {The Changing Causes and Consequences of Not Working Before Age 62}, number = {12-03}, year = {2012}, institution = {The Urban Institute}, address = {Washington, D.C.}, abstract = {This study uses the Health and Retirement Study to deepen our understanding of nonworking adults ages 51 to 61 and how they support themselves before qualifying for Social Security benefits. The results show that nonworking adults ages 51 to 61 are a heterogeneous group. A large share is poor, with low incomes and limited wealth. But a sizeable share has low incomes and abundant wealth. These individuals are income poor but asset rich. More than for singles, this phenomenon characterizes nonworking married adults. In general, we find that nonworking married adults are significantly better off than their unmarried counterparts. Many nonworking married adults have working spouses. On average, married adults without earnings have twice the per person income and more than ten times the per person assets of single adults without earnings. Additionally, married adults without earnings are 20-30 percentage points less likely to be poor than single adults without earnings. It is important for policymakers to understand who stops working early and how they support themselves. Nonworkers may be more likely to apply and qualify for Social Security disability and SSI benefits. Also, more than any other group, nonworkers will be adversely impacted by any increases to the early entitlement age. Finally, nonworkers are especially vulnerable in retirement because they are likely to have lower savings, Social Security benefits, and pensions than workers.}, keywords = {Consumption and Savings, Disabilities, Employment and Labor Force, Net Worth and Assets, Public Policy, Social Security}, url = {https://www.urban.org/sites/default/files/publication/23531/412801-The-Changing-Causes-and-Consequences-of-Not-Working-before-Age-.PDF}, author = {Barbara A Butrica and Nadia S. Karamcheva} } @article {5774, title = {Strange But True: Claim and Suspend Social Security}, number = {IB$\#$9-11}, year = {2009}, institution = {Center for Retirement Research at Boston College}, address = {Boston}, abstract = {The brief{\textquoteright}s key findings are: During the current economic crisis, many older workers are postponing retirement and some retirees are re-entering the labor force. Re-entrants age 66 and over can put their Social Security benefits {\textquotedblleft}on hold{\textquotedblright} in exchange for higher benefits later. This {\textquotedblleft}claim and suspend{\textquotedblright} strategy also offers greater flexibility to one-earner couples, allowing the higher earner to delay benefits while his spouse claims. The potential costs to Social Security are modest.}, keywords = {Retirement Planning and Satisfaction, Social Security}, url = {https://crr.bc.edu/briefs/strange-but-true-claim-and-suspend-social-security/}, author = {Alicia H. Munnell and Golub-Sass, Alex and Nadia S. Karamcheva} } @article {5776, title = {Strange But True: Claim Social Security Now, Claim More Later}, year = {2009}, institution = {Center for Retirement Research at Boston College}, keywords = {Retirement Planning and Satisfaction, Social Security}, url = {http://www.advicenter.com/AgentUploads/2124608992/ClaimSSNowClaimMoreSSLater-BostonCollegeStudy.pdf}, author = {Alicia H. Munnell and Golub-Sass, Alex and Nadia S. Karamcheva} } @article {5775, title = {Strange But True: Free Loan from Social Security}, year = {2009}, institution = {Center for Retirement Research at Boston College}, keywords = {Retirement Planning and Satisfaction, Social Security}, url = {http://www.investmentnews.com/assets/docs/CI6088349.PDF}, author = {Alicia H. Munnell and Golub-Sass, Alex and Nadia S. Karamcheva} } @article {10780, title = {Unusual Social Security Claiming Strategies: Costs and Distributional Effects}, number = {WP$\#$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} }