Brief How Do the Changing Labor Supply Behavior and Marriage Patterns of Women Affect Social Security Replacement Rates?
April Yanyuan Wu, Nadia Karamcheva, Alicia H. Munnell, Patrick Purcell
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Using data from the Health and Retirement Study and Modeling Income in the Near Term, this paper examines the impact of the changing lives of women on Social Security replacement rates. Replacement rates have dropped sharply at both the household- and individual-level, and the decline will continue for future retirees. 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.
Research Areas Aging and retirement
Tags Social Security Economic well-being Older workers Pensions Retirement policy
Policy Centers Income and Benefits Policy Center