Changing the Social Security Rules for Workers over 65: Proposed Policies and Their Effects

Alan Gustman () and Thomas L. Steinmeier

No 3087, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper simulates the effects of proposals to modify procedures for adjusting the Social Security benefits of those who work after normal retirement age. A basic set of policies, currently under consideration, is projected to raise long run costs by $30 billion dollars net of taxes, while inducing an increase of 5 percent in the number of full-time male workers between the ages of 65 and 69. Alternative policies may create very different flows of funds. Outcomes, especially in the short run, will vary widely with the timing of the application decision for benefits.

Date: 1989-08
Note: LS
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Published as "Changing the Social Security Rules for Work After 65." From Industrial & Labor Relations Review, Vol. 44, No. 4, pp. 733-745, (July 1991).

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