@article {11373,
	title = {The Impact of Growing Health and Mortality Inequalities on Lifetime Social Security Payouts},
	number = {MRDRC WP 2020-412},
	year = {2020},
	institution = {Michigan Retirement and Disability Research Center, University of Michigan},
	address = {Ann Arbor, MI},
	abstract = {The prevalence of obesity, diabetes, and other health problems has increased in recent
decades in the United States, and there is a growing gap between the health and longevity of
individuals with high socioeconomic status (SES) and low SES. These trends likely have
implications for Social Security{\textquoteright}s financial position in the coming decades. Because high-SES
individuals tend to receive higher annual benefits and live longer, increases in health and
mortality inequalities may result in increases in aggregate Social Security payouts. This paper
uses data from the Health and Retirement Study, and a microsimulation model of health,
mortality, and Social Security benefits, to forecast lifetime Social Security benefits of the 1934 to
1959 birth cohorts in the U.S. We compare alternative assumptions about the future course of
mortality. We find that accounting for health and mortality inequalities is important. In a baseline
model that ignores trends in mortality inequalities, we estimate that lifetime Social Security
benefits would grow by 26\% in real terms between the 1934 and 1959 birth cohorts due to
increasing benefit levels and improvements in average mortality. When we account for mortality
inequalities, we find an increase of 28\% to 38\% in average lifetime benefits, depending on the
assumptions of the model. We also forecast lifetime benefits using the alternative assumption
that improvements in population mortality will slow for younger birth cohorts.},
	keywords = {health, mortality inequalities, Social Security},
	url = {https://mrdrc.isr.umich.edu/publications/papers/pdf/wp412.pdf},
	author = {P{\'e}ter Hudomiet and Michael D Hurd and Susann Rohwedder}
}
@article {5655,
	title = {The Impact of Misperceptions about Social Security on Saving and Well-Being},
	year = {2006},
	institution = {The University of Michigan, Michigan Retirement Research Center},
	abstract = {Earlier research suggests that many people in their fifties and early sixties are not well informed about their Social Security entitlements. This paper investigates the effect of deviations between predicted and realized Social Security benefits on several measures of well-being in retirement, such as the change in consumption expenditures at retirement, a self-assessed measure of how retirement years compare to the years before retirement, and whether the individual is worried about having enough income to get by in retirement. The analysis is based upon US data from the Health and Retirement Study, following individuals over a long time period from their fifties into retirement. We find clear evidence that people who over estimated their Social Security benefits are worse off according to several measures of well being in retirement. This relationship seems to be more pronounced for respondents who claimed benefits earlier than anticipated than for those who were simply misinformed.},
	keywords = {Net Worth and Assets, Social Security},
	url = {http://www.mrrc.isr.umich.edu},
	author = {Susann Rohwedder and Arthur H.O. vanSoest}
}
