The behavioral and consumption effects of Social Security changes

Hou, Wenliang, and Geoffrey T. Sanzenbacher. “The behavioral and consumption effects of Social Security changes”. CRR WP 2017-10, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, September 2017. http://hdl.handle.net/2345/bc-ir:107618.
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Abstract

Social Security's Trust Fund is projected to be exhausted in 2034. A variety of changes to the program have been put forward that would either push this date out into the future or delay it indefinitely. Some of these changes would cut benefits - e.g., increasing the Full Retirement Age (FRA) to 69 - while others would increase program revenue - e.g., increasing the payroll tax. While Social Security's Office of the Chief Actuary projects the financial impact on the program of a wide variety of changes, understanding the impact of these changes on recipients' behavior and well-being is also a valuable exercise. This paper uses the Gustman and Steinmeier structural model to analyze the effects of four changes to the Social Security program on recipients' retirement timing and household consumption.

Title
The behavioral and consumption effects of Social Security changes
Author
Hou, Wenliang
Sanzenbacher, Geoffrey T.
Center
Center for Retirement Research
Genre
working paper
Date Issued
September 2017
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2017-10
Persistent Link
http://hdl.handle.net/2345/bc-ir:107618
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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