Research
A Social Security Bridge Option Would Help Reduce Early-Claiming Penalties For Those With Retirement Savings
Policy Note | The Social Security benefit structure penalizes people who claim before age 70. Yet over one-fifth of eligible people claim before their full retirement age (age 67 for those born in 1960), and over 90 percent claim before the maximum age of 70, resulting in reduced monthly benefits. While many claim early out of necessity, financial advisors often recommend to those with retirement savings to spend down their savings before tapping into Social Security to increase their lifetime...
Paper | This paper assesses economics research and teaching frameworks in the United States by examining how knowledge is produced and ranked, the flaws and strengths of heterodox economic theory; and how students are trained, especially for careers in economic policy.
Older Workers Claim Social Security While Working, Upending Beliefs About Raising the Retirement Age
Policy Note | Challenging the widespread assumption that people claim their retirement benefits only when they retire, more than one-fifth of older workers in the United States start claiming Social Security benefits as soon as they are eligible, even while working for pay. Low-income older workers are more than three times as likely as high-income workers to claim early, indicating a reliance on Social Security payments to supplement low wages. Those who claim before the full retirement age (also known as the Normal Retirement Age) will receive reduced benefits throughout their lives, leaving them financially vulnerable once they stop working. Because so many older workers collect reduced Social Security benefits, raising the retirement age will have little effect on getting people to work longer and will simply reduce benefits further. Instead, reforms should focus on policies like creating an Older Workers Bureau to support work at older ages, and bolstering Social Security benefits for those who risk falling into poverty in retirement.
Book | This book explores the myriad challenges of climate change and in reaching a low-carbon economy. It develops a framework for dynamic macroeconomic modeling for the climate-economy interaction, presents empirical trends in carbon-emitting resource use, and discusses policy strategies for sustainable growth under global climate change constraints.
Working Paper | This article documents risks and disparities among older workers in the labor force and in retirement preparedness and explores the links between labor market challenges facing older workers and retirement insecurity.
Policy Note | In the United States, high overall rates of home ownership among households aged 55–64 obscure a vital reality. Many low-income older households risk financial fragility because they are renters and high rent burdens inhibit their ability to save for emergencies. Even middle- and high-income households who own their own homes risk housing-related financial fragility due to high mortgage debt. Overall rates of financial fragility, which include non-housing debt and emergency savings, remain high for all older households regardless of income. Our policy recommendations focus on supporting higher wages, solidifying emergency savings, and reforming the retirement system to reduce financial fragility at older ages.
Policy Note | Unpaid care work — the vast majority of such work in the United States — is primarily shouldered by economically vulnerable people. The costs associated with unpaid care work compound existing economic insecurity, leading to higher rates of poverty in old age. It is essential to support informal caregivers by recognizing caregiving as work and expanding their access to social safety net programs and providing paid family care leave.
Research Note | Unfriendly Labor Markets for Older Workers Require Bold Moves for Retirement Savings: Analysis of Labor Force Engagement of Older People in Selected States
