How is Economic Hardship Avoided by Those Retiring Before the Social Security Entitlement Age?

Kevin Milligan

No 18051, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Governments around the world are reacting to extended lifespans and troubled pension finances by increasing the age of retirement benefit entitlement. One concern that arises is how those who are not working before reaching entitlement age are able to bridge their consumption to the age of entitlement. This paper studies those who retire before the age of full pension entitlement in the United States using data drawn from the Health and Retirement Study. The major finding is that four out of five people who have zero earnings at pre-entitlement ages are able to find a way to lift their incomes over the poverty line. For men, pension and annuity income is important while for women, spousal income helps most to get them over the line. Reaching the early retirement entitlement age at 62 also has a significant impact on poverty avoidance.

JEL-codes: J14 J26 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-age, nep-dem and nep-lab
Note: AG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as "How is hardship avoided by those retiring before the Social Security entitlement age?" Journal of Pension Economics and Finance, forthcoming.

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Journal Article: How is economic hardship avoided by those retiring before the Social Security entitlement age? (2014)
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