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<div id="hLogo"><a class="navLogo" href="/policy/index.html">Social Security</a><a class="navSearch" href="https://search.ssa.gov/search?affiliate=ssa">SEARCH</a></div>
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<h1 itemprop="headline">Employment at Older Ages and Social Security Benefit Claiming</h1>
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<div id="hByline">by <span itemprop="author">Patrick J. Purcell</span><br>Social Security Bulletin, <abbr title="Volume">Vol.</abbr> 76 <abbr title="Number">No.</abbr> 4, 2016 (released November 2016)</div>
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<div id="breadcrumbs" itemscope itemtype="http://schema.org/BreadcrumbList">You are here: <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="/" itemprop="item"><span itemprop="name">Social Security Administration</span></a><meta itemprop="position" content="1" /></span> > <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="/policy/index.html" itemprop="item"><span itemprop="name">Research, Statistics & Policy Analysis</span></a><meta itemprop="position" content="2" /></span> > <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="/policy/docs/ssb/index.html" itemprop="item"><span itemprop="name">Social Security Bulletin</span></a><meta itemprop="position" content="3" /></span> > <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="index.html" itemprop="item"><span itemprop="name"><abbr title="Volume">Vol.</abbr> 76 <abbr title="Number">No.</abbr> 4</span></a><meta itemprop="position" content="4" /></span></div>
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<h4>Updated Content</h4>
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<div class="rcItems">
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<p>Research and Statistics Note <span class="nobr">2020-01:</span> <a href="/policy/docs/rsnotes/rsn2020-01.html">Employment at Older Ages and Social Security Benefit Claiming, <span class="nobr">1980–2018</span></a></p>
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</div>
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</div>
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<div class="introBox">
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<p id="synopsis" itemprop="description">A retired worker's Social Security benefit depends in part on the age at which he or she claims benefits. Working longer and claiming benefits later increase the monthly benefit. Information about trends in employment at older ages and the age at which individuals claim Social Security benefits can help policymakers assess the effectiveness of current policies in influencing the timing of retirement and benefit claims. Both the labor force participation rate among older Americans and the age at which they claim Social Security retirement benefits have risen in recent years. For example, from 2000 through 2015, the labor force participation rate among individuals aged <span class="nobr">65–69</span> rose from 30 percent to 37 percent for men and from 19 percent to 28 percent for women. Since 2000, the proportion of fully insured men and women who claim retirement benefits at the earliest eligibility age of 62 has declined substantially. </p>
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<hr />
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<div class="eightypercent">
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<p>Patrick Purcell is with the Office of Retirement Policy, Office of Retirement and Disability Policy, Social Security Administration.</p>
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<p>Contents of this publication are <a href="/policy/accessibility.html">not copyrighted</a>; any items may be reprinted, but citation of the <i>Social Security Bulletin</i> as the source is requested. The findings and conclusions presented in the <i>Bulletin</i> are those of the authors and do not necessarily represent the views of the Social Security Administration.</p>
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</div>
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</div>
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<h2>Introduction: The Aging <abbr>U.S.</abbr> Population</h2>
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<div class="abbrtable">
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<table role="presentation">
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<caption>Selected Abbreviations</caption>
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<colgroup span="1" style="width:25%"></colgroup>
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<colgroup span="1"></colgroup>
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<tbody>
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<tr>
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<td><abbr class="spell">BLS</abbr></td>
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<td>Bureau of Labor Statistics</td>
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</tr>
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<tr>
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<td><abbr class="spell">DI</abbr></td>
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<td>Disability Insurance</td>
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</tr>
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<tr>
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<td><abbr class="spell">DRC</abbr></td>
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<td>delayed retirement credit</td>
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</tr>
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<tr>
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<td><abbr class="spell">FRA</abbr></td>
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<td>full retirement age</td>
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</tr>
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<tr>
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<td><abbr class="spell">LFPR</abbr></td>
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<td>labor force participation rate</td>
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</tr>
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<tr>
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<td><abbr class="spell">OCACT</abbr></td>
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<td>Office of the Chief Actuary</td>
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</tr>
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<tr>
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<td><abbr>P.L.</abbr></td>
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<td>Public Law</td>
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</tr>
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<tr>
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<td><abbr class="spell">RET</abbr></td>
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<td>retirement earnings test</td>
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</tr>
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<tr>
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<td><abbr class="spell">SSA</abbr></td>
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<td>Social Security Administration</td>
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</tr>
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</tbody>
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</table>
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</div>
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<p>In 2016, the oldest members of the “baby boom” generation—the 75 million living Americans who were born in the period <span class="nobr">1946–1964</span>—are 70 years old, and the youngest baby boomers reach age 52. Over the next 20 years, the proportion of Americans who are aged 65 or older will increase substantially. Growth in the number of older Americans will result in higher expenditures for Social Security, Medicare, and Medicaid, and will affect the amounts and sources of income for tens of millions of individuals and families.</p>
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<p>The Census Bureau projects that the <abbr>U.S.</abbr> population will grow from 321 million in 2015 to 370 million in 2035, an increase of 15.3 percent. Most of the increase will occur among people aged 65 or older, whose numbers will grow from 48 million in 2015 to 79 million in 2035—an increase of 31 million, or 64.6 percent. Over that period, the number of people aged 64 or younger is projected to grow from 274 million to 291 million, an increase of only 17 million, or 6.2 percent. As a result, the proportion of the population that is aged 65 or older is projected to rise from 15.0 percent in 2015 to 21.4 percent in 2035 (Census Bureau 2014).</p>
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<p>The growth in the proportion of the population that is aged 65 or older over the next 20 years will reflect recent demographic trends, especially the rise and subsequent fall in birth rates in the second half of the 20<sup>th</sup> century. Changes in birth rates and death rates typically occur over long periods, and they can take decades to affect the age profile of a nation's population. By contrast, trends in retirement age—and in the age at which individuals claim Social Security benefits—can change substantially in a short time. Choices about retirement and Social Security benefit claiming can affect individuals' retirement income many years into the future. By delaying retirement, for example, workers can continue to accumulate savings instead of beginning to draw those savings down to pay their living expenses. Additionally, workers who delay claiming their Social Security benefits until after the earliest age of eligibility receive larger monthly benefits for life.</p>
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<p>This article presents data on trends in the labor force participation rate (<abbr class="spell">LFPR</abbr>) of older Americans, in the age at which people claim Social Security retired-worker benefits, and in the proportion of men and women aged 62 or older who receive disabled-worker or retired-worker benefits. The data are summarized in six charts. The first chart shows <abbr class="spell">LFPR</abbr>s based on data collected in the Current Population Survey (<abbr class="spell">CPS</abbr>), a monthly survey of households conducted by the Census Bureau. The <abbr class="spell">CPS</abbr> collects data on employment, unemployment, persons not in the labor force, hours of work, and earnings, along with other demographic and labor force characteristics (Census Bureau, <abbr>n.d.</abbr>). It is the primary source of data for estimates of the national unemployment rate published monthly by the Bureau of Labor Statistics (<abbr class="spell">BLS</abbr>). The remaining five charts illustrate trends in Social Security benefit claiming behavior and in beneficiaries as a percentage of the insured population. Those charts are based on administrative records and estimates prepared by the Office of the Chief Actuary (<abbr class="spell">OCACT</abbr>) of the Social Security Administration (<abbr class="spell">SSA</abbr>) for <i>The 2015 Annual Report of the Board of Trustees of the Federal <span class="nobr">Old-Age</span> and Survivors Insurance and Federal Disability Insurance Trust Funds</i> (or simply the <i>Trustees Report</i>).</p>
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<p>The article also includes appendices that provide information on Social Security rules and definitions that are relevant to the decision of when to claim retired-worker benefits. The appendices also address rules changes enacted in 1983 and 2000 that affect workers in earlier and later birth cohorts differently.</p>
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<h2>Trends in Labor Force Participation at Age 55 or Older</h2>
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<p>The civilian labor force comprises noninstitutionalized individuals aged 16 or older who are working <span class="nobr">(full-time</span> or <span class="nobr">part-time)</span> or are unemployed and looking for work (<abbr class="spell">BLS</abbr>, <abbr>n.d.</abbr>). People aged 16 or older who are neither working nor looking for work are considered to be not in the labor force; those individuals are mainly <span class="nobr">full-time</span> students, homemakers, persons with disabilities, and retirees.<sup><a href="#mn1" id="mt1">1</a></sup> The <abbr class="spell">LFPR</abbr> is the percentage of civilian noninstitutionalized individuals aged 16 or older who are working or are unemployed and looking for work.</p>
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<p>The <abbr class="spell">LFPR</abbr> is highest at ages <span class="nobr">25–54</span> for both men and women, and it is higher at all ages for men than for women. Over the last 60 years, however, the <abbr class="spell">LFPR</abbr> among ages <span class="nobr">25–54</span> has fallen for men, while it has risen for women.<sup><a href="#mn2" id="mt2">2</a></sup> The <abbr class="spell">LFPR</abbr> declines as workers age. At ages 55 or older, workers may begin to leave the labor force because of age-related disability or because they choose to retire. However, over the last 30 years, the <abbr class="spell">LFPR</abbr>s of both men and women aged 55 or older have risen. A number of factors may have contributed to the rising <abbr class="spell">LFPR</abbr> among older Americans. A partial list includes the <span class="nobr">long-term</span> shift in employment toward industries and occupations that require relatively less physical stamina, the trend away from defined-benefit pensions to defined-contribution retirement savings plans, the decline in the availability of employer-sponsored retiree health insurance, and the 1983 and 2000 Social Security rules changes (discussed later).</p>
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<p>The increase in the <abbr class="spell">LFPR</abbr> at ages 55 or older has occurred while the number of single-person households has risen, as more people are either divorced or never married when they reach traditional retirement ages. Higher employment rates at older ages could be either a cause or an effect of the increase in single-person households. On one hand, working at older ages may enable greater numbers of older Americans to live alone. On the other hand, the absence of a spouse—and possibly a second source of income—may make it necessary for people who live alone to work longer.</p>
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<p>Chart 1 illustrates the <abbr class="spell">LFPR</abbr>s for 1980, 1985, and <span class="nobr">1990–2015</span> among older men and women in four age groups: <span class="nobr">55–59,</span> <span class="nobr">60–64,</span> <span class="nobr">65–69,</span> and 70 or older. Men aged <span class="nobr">55–59</span> are the only group represented in the chart for whom the <abbr class="spell">LFPR</abbr> did not rise after 1985. The <abbr class="spell">LFPR</abbr> among men aged <span class="nobr">55–59</span> fell from 82 percent in 1980 to 77 percent in 1994. Thereafter, it remained relatively stable, fluctuating within a narrow range of <span class="nobr">77–79</span> percent through 2015. The <abbr class="spell">LFPR</abbr> among men aged <span class="nobr">60–64</span> also fell in the period <span class="nobr">1980–1994,</span> from 61 percent to 53 percent. Thereafter, it began to rise slowly but steadily, reaching 55 percent in 2000 and 62 percent in 2015.</p>
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<div class="chartCenter">
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<div class="chart700" id="chart1">
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<div class="title">Chart 1.<br><abbr class="spell">LFPR</abbr> for men and women aged 55 or older by age group, selected years <span class="nobr">1980–2015</span></div>
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<div class="scrollChart"><img src="v76n4p1-chart01.gif" alt="Two line charts, one for men and one for women, with tabular version below." width="657" height="780" /></div>
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<div class="table altTable"><a class="altToggle" href="">Show as table</a>
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<table>
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<caption><span class="tableNumber">Table equivalent for Chart 1. </span><abbr class="spell">LFPR</abbr> for men and women aged 55 or older by age group, selected years <span class="nobr">1980–2015</span></caption>
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<colgroup span="1" style="width:5em"></colgroup>
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<colgroup span="4" style="width:6em"></colgroup>
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<thead>
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<tr>
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<th class="stubHeading" scope="col">Year</th>
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<th scope="col"><span class="nobr">55–59</span></th>
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<th scope="col"><span class="nobr">60–64</span></th>
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<th scope="col"><span class="nobr">65–69</span></th>
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<th scope="col">70 or older</th>
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</tr>
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</thead>
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<tbody>
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<tr>
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<td> </td>
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<th colspan="4" class="panel" scope="rowgroup">Men</th>
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</tr>
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<tr>
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<th class="stub0" scope="row">1980</th>
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<td>82</td>
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<td>61</td>
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<td>29</td>
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<td>13</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1985</th>
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<td>80</td>
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<td>56</td>
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<td>24</td>
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<td>11</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1990</th>
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<td>80</td>
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<td>55</td>
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<td>26</td>
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<td>11</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1991</th>
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<td>79</td>
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<td>55</td>
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<td>25</td>
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<td>11</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1992</th>
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<td>79</td>
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<td>55</td>
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<td>26</td>
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<td>11</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1993</th>
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<td>78</td>
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<td>54</td>
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<td>25</td>
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<td>10</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1994</th>
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<td>77</td>
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<td>53</td>
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<td>27</td>
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<td>12</td>
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</tr>
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<tr>
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<th class="stub0" scope="row">1995</th>
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<td>77</td>
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<td>53</td>
|
|
<td>27</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1996</th>
|
|
<td>79</td>
|
|
<td>55</td>
|
|
<td>28</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1997</th>
|
|
<td>79</td>
|
|
<td>54</td>
|
|
<td>28</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1998</th>
|
|
<td>78</td>
|
|
<td>55</td>
|
|
<td>28</td>
|
|
<td>11</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1999</th>
|
|
<td>78</td>
|
|
<td>55</td>
|
|
<td>28</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2000</th>
|
|
<td>77</td>
|
|
<td>55</td>
|
|
<td>30</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2001</th>
|
|
<td>77</td>
|
|
<td>56</td>
|
|
<td>30</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2002</th>
|
|
<td>78</td>
|
|
<td>58</td>
|
|
<td>32</td>
|
|
<td>11</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2003</th>
|
|
<td>78</td>
|
|
<td>57</td>
|
|
<td>33</td>
|
|
<td>12</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2004</th>
|
|
<td>78</td>
|
|
<td>57</td>
|
|
<td>33</td>
|
|
<td>13</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2005</th>
|
|
<td>78</td>
|
|
<td>58</td>
|
|
<td>34</td>
|
|
<td>14</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2006</th>
|
|
<td>78</td>
|
|
<td>59</td>
|
|
<td>34</td>
|
|
<td>14</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2007</th>
|
|
<td>78</td>
|
|
<td>59</td>
|
|
<td>34</td>
|
|
<td>14</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2008</th>
|
|
<td>79</td>
|
|
<td>60</td>
|
|
<td>36</td>
|
|
<td>15</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2009</th>
|
|
<td>78</td>
|
|
<td>61</td>
|
|
<td>36</td>
|
|
<td>15</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2010</th>
|
|
<td>78</td>
|
|
<td>60</td>
|
|
<td>36</td>
|
|
<td>15</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2011</th>
|
|
<td>78</td>
|
|
<td>59</td>
|
|
<td>37</td>
|
|
<td>15</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2012</th>
|
|
<td>78</td>
|
|
<td>61</td>
|
|
<td>37</td>
|
|
<td>16</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2013</th>
|
|
<td>78</td>
|
|
<td>60</td>
|
|
<td>37</td>
|
|
<td>16</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2014</th>
|
|
<td>77</td>
|
|
<td>62</td>
|
|
<td>36</td>
|
|
<td>16</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2015</th>
|
|
<td>77</td>
|
|
<td>62</td>
|
|
<td>37</td>
|
|
<td>16</td>
|
|
</tr>
|
|
<tr>
|
|
<td> </td>
|
|
<th colspan="4" class="panel" scope="rowgroup">Women</th>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1980</th>
|
|
<td>49</td>
|
|
<td>33</td>
|
|
<td>15</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1985</th>
|
|
<td>50</td>
|
|
<td>33</td>
|
|
<td>14</td>
|
|
<td>4</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1990</th>
|
|
<td>55</td>
|
|
<td>36</td>
|
|
<td>17</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1991</th>
|
|
<td>56</td>
|
|
<td>35</td>
|
|
<td>17</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1992</th>
|
|
<td>57</td>
|
|
<td>37</td>
|
|
<td>16</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1993</th>
|
|
<td>57</td>
|
|
<td>37</td>
|
|
<td>16</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1994</th>
|
|
<td>59</td>
|
|
<td>38</td>
|
|
<td>18</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1995</th>
|
|
<td>59</td>
|
|
<td>38</td>
|
|
<td>18</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1996</th>
|
|
<td>60</td>
|
|
<td>39</td>
|
|
<td>18</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1997</th>
|
|
<td>61</td>
|
|
<td>40</td>
|
|
<td>18</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1998</th>
|
|
<td>61</td>
|
|
<td>39</td>
|
|
<td>18</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1999</th>
|
|
<td>62</td>
|
|
<td>39</td>
|
|
<td>18</td>
|
|
<td>5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2000</th>
|
|
<td>61</td>
|
|
<td>40</td>
|
|
<td>19</td>
|
|
<td>6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2001</th>
|
|
<td>62</td>
|
|
<td>42</td>
|
|
<td>20</td>
|
|
<td>6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2002</th>
|
|
<td>64</td>
|
|
<td>44</td>
|
|
<td>21</td>
|
|
<td>6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2003</th>
|
|
<td>65</td>
|
|
<td>45</td>
|
|
<td>23</td>
|
|
<td>6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2004</th>
|
|
<td>65</td>
|
|
<td>45</td>
|
|
<td>23</td>
|
|
<td>7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2005</th>
|
|
<td>66</td>
|
|
<td>46</td>
|
|
<td>24</td>
|
|
<td>7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2006</th>
|
|
<td>67</td>
|
|
<td>47</td>
|
|
<td>24</td>
|
|
<td>7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2007</th>
|
|
<td>67</td>
|
|
<td>48</td>
|
|
<td>26</td>
|
|
<td>8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2008</th>
|
|
<td>68</td>
|
|
<td>49</td>
|
|
<td>26</td>
|
|
<td>8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2009</th>
|
|
<td>68</td>
|
|
<td>50</td>
|
|
<td>27</td>
|
|
<td>8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2010</th>
|
|
<td>68</td>
|
|
<td>51</td>
|
|
<td>27</td>
|
|
<td>8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2011</th>
|
|
<td>68</td>
|
|
<td>50</td>
|
|
<td>27</td>
|
|
<td>8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2012</th>
|
|
<td>67</td>
|
|
<td>50</td>
|
|
<td>28</td>
|
|
<td>8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2013</th>
|
|
<td>67</td>
|
|
<td>50</td>
|
|
<td>28</td>
|
|
<td>9</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2014</th>
|
|
<td>66</td>
|
|
<td>50</td>
|
|
<td>27</td>
|
|
<td>9</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2015</th>
|
|
<td>66</td>
|
|
<td>50</td>
|
|
<td>28</td>
|
|
<td>9</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="noNotes" colspan="5"> </td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<div class="onlyNote">SOURCE: <abbr class="spell">BLS</abbr> <i>Employment and Earnings</i> (January issues).</div>
|
|
</div>
|
|
</div>
|
|
<p>Although the <abbr class="spell">LFPR</abbr> among men and women aged 65 or older has been increasing for the last 20 years, it remains much lower than the rate among men and women aged <span class="nobr">55–64.</span> For example, 77 percent of men aged <span class="nobr">55–59</span> were in the labor force in 2015, compared with 62 percent of men aged <span class="nobr">60–64,</span> 37 percent of those aged <span class="nobr">65–69,</span> and 16 percent of those aged 70 or older. In other words, in 2015, the <abbr class="spell">LFPR</abbr> of men aged <span class="nobr">65–69</span> was less than half that of men aged <span class="nobr">55–59.</span></p>
|
|
<p>From 1980 through 1985, the <abbr class="spell">LFPR</abbr> among men aged <span class="nobr">65–69</span> fell from 29 percent to 24 percent, before rising to 30 percent in 2000 and 37 percent in 2011. From 2008 through 2015, the <abbr class="spell">LFPR</abbr> among men aged <span class="nobr">65–69</span> averaged 37 percent. Among the four age groups illustrated in Chart 1, <span class="nobr">65–69</span> shows the largest proportional increase in labor force participation from 2000 through 2015. For that group, the <abbr class="spell">LFPR</abbr> rose from 30 percent in 2000 to 37 percent in 2015, an increase of 23 percent. Among men aged 70 or older, the <abbr class="spell">LFPR</abbr> averaged 11 percent from 1980 through 1999 and then increased to 16 percent by 2012, where it remained through 2015.</p>
|
|
<p>Historically, the <abbr class="spell">LFPR</abbr> among women aged 55 or older has been lower than the <abbr class="spell">LFPR</abbr> among men of that age. Although the gap narrowed substantially after 1980, the <abbr class="spell">LFPR</abbr> among women aged 55 or older remained lower than that of men 55 or older in 2015. For the <span class="nobr">55–59</span> age group, 66 percent of women were in the labor force in 2015, 11 percentage points lower than the rate among men. For ages <span class="nobr">60–64,</span> the <abbr class="spell">LFPR</abbr> among women was 50 percent in 2015, compared with 62 percent among men. Likewise, the women's <abbr class="spell">LFPR</abbr>s of 28 percent for ages <span class="nobr">65–69</span> and 9 percent for ages 70 or older were lower than the corresponding rates of 37 percent and 16 percent among men in the respective age groups.</p>
|
|
<p>After steadily rising from 49 percent in 1980 to 61 percent in 2000 and 68 percent in 2008, the <abbr class="spell">LFPR</abbr> among women aged <span class="nobr">55–59</span> leveled off and then declined slightly to 66 percent in 2015. Among women aged <span class="nobr">60–64,</span> the <abbr class="spell">LFPR</abbr> rose from 33 percent in 1980 to 40 percent in 2000 and 50 percent in 2009. At that point, it leveled off and remained at 50 percent in 2015. Among women aged <span class="nobr">65–69,</span> the <abbr class="spell">LFPR</abbr> rose from 15 percent in 1980 to 19 percent in 2000 and 27 percent in 2010. From 2011 through 2015, it remained relatively stable, averaging 27 percent. Among all three of those age groups, the increase in <abbr class="spell">LFPR</abbr> appears to have stopped at least temporarily in the period <span class="nobr">2010–2014.</span> Among women aged 70 or older, the <abbr class="spell">LFPR</abbr> was relatively flat from 1980 through 1999, averaging 5 percent per year; then, from 2000 through 2015, it rose modestly, from 6 percent to 9 percent.</p>
|
|
<h2>Growth in the Population That Is Fully Insured for Retired-Worker Benefits</h2>
|
|
<p>Because of the increase in the <abbr class="spell">LFPR</abbr> among women of all ages that began in the 1950s, both the number and the proportion of women who are fully insured for Social Security retirement benefits have increased.<sup><a href="#mn3" id="mt3">3</a></sup> Chart 2 shows that from 1984 through 2014, the number of women aged <span class="nobr">62–66</span> who were fully insured for retirement benefits rose from 3.7 million to 7.9 million and the proportion of women in that age group who were fully insured increased from 66 percent to 86 percent. Among women aged <span class="nobr">40–49,</span> almost 90 percent were fully insured for retired-worker benefits in 2014 (not shown). That fact suggests that the percentage of women aged <span class="nobr">62–66</span> who are fully insured for retirement benefits is likely to rise by 2 or 3 percentage points over the next 20 years.</p>
|
|
<div class="chartCenter">
|
|
<div class="chart700" id="chart2">
|
|
<div class="title">Chart 2.<br>Number and percentage of men and women aged <span class="nobr">62–66</span> who are fully insured for Social Security retired-worker benefits, <span class="nobr">1984–2014</span></div>
|
|
<div class="scrollChart"><img src="v76n4p1-chart02.gif" alt="Line chart with tabular version below." width="673" height="328" /></div>
|
|
<div class="table altTable"><a class="altToggle" href="">Show as table</a>
|
|
<table>
|
|
<caption><span class="tableNumber">Table equivalent for Chart 2. </span>Number and percentage of men and women aged <span class="nobr">62–66</span> who are fully insured for Social Security retired-worker benefits, <span class="nobr">1984–2014</span></caption>
|
|
<colgroup span="1" style="width:5em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<thead>
|
|
<tr>
|
|
<th rowspan="2" class="stubHeading" scope="colgroup">Year</th>
|
|
<th colspan="2" class="spanner" scope="colgroup">Number (in millions)</th>
|
|
<th colspan="2" class="spanner" scope="colgroup">Percentage</th>
|
|
</tr>
|
|
<tr>
|
|
<th scope="col">Men</th>
|
|
<th scope="col">Women</th>
|
|
<th scope="col">Men</th>
|
|
<th scope="col">Women</th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr>
|
|
<th class="stub0" scope="row">1984</th>
|
|
<td>4.5</td>
|
|
<td>3.7</td>
|
|
<td>92</td>
|
|
<td>66</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1985</th>
|
|
<td>4.5</td>
|
|
<td>3.8</td>
|
|
<td>92</td>
|
|
<td>66</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1986</th>
|
|
<td>4.6</td>
|
|
<td>3.8</td>
|
|
<td>93</td>
|
|
<td>66</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1987</th>
|
|
<td>4.6</td>
|
|
<td>3.9</td>
|
|
<td>93</td>
|
|
<td>66</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1988</th>
|
|
<td>4.6</td>
|
|
<td>3.8</td>
|
|
<td>93</td>
|
|
<td>66</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1989</th>
|
|
<td>4.6</td>
|
|
<td>3.9</td>
|
|
<td>93</td>
|
|
<td>67</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1990</th>
|
|
<td>4.6</td>
|
|
<td>3.8</td>
|
|
<td>92</td>
|
|
<td>67</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1991</th>
|
|
<td>4.5</td>
|
|
<td>3.8</td>
|
|
<td>91</td>
|
|
<td>67</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1992</th>
|
|
<td>4.5</td>
|
|
<td>3.8</td>
|
|
<td>91</td>
|
|
<td>67</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1993</th>
|
|
<td>4.5</td>
|
|
<td>3.8</td>
|
|
<td>91</td>
|
|
<td>68</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1994</th>
|
|
<td>4.5</td>
|
|
<td>3.7</td>
|
|
<td>91</td>
|
|
<td>68</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1995</th>
|
|
<td>4.4</td>
|
|
<td>3.7</td>
|
|
<td>91</td>
|
|
<td>69</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1996</th>
|
|
<td>4.4</td>
|
|
<td>3.7</td>
|
|
<td>92</td>
|
|
<td>70</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1997</th>
|
|
<td>4.4</td>
|
|
<td>3.8</td>
|
|
<td>92</td>
|
|
<td>71</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1998</th>
|
|
<td>4.4</td>
|
|
<td>3.8</td>
|
|
<td>92</td>
|
|
<td>72</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1999</th>
|
|
<td>4.5</td>
|
|
<td>3.9</td>
|
|
<td>92</td>
|
|
<td>73</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2000</th>
|
|
<td>4.6</td>
|
|
<td>4.1</td>
|
|
<td>92</td>
|
|
<td>74</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2001</th>
|
|
<td>4.7</td>
|
|
<td>4.2</td>
|
|
<td>91</td>
|
|
<td>74</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2002</th>
|
|
<td>4.8</td>
|
|
<td>4.3</td>
|
|
<td>92</td>
|
|
<td>75</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2003</th>
|
|
<td>5.0</td>
|
|
<td>4.5</td>
|
|
<td>92</td>
|
|
<td>77</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2004</th>
|
|
<td>5.3</td>
|
|
<td>4.8</td>
|
|
<td>92</td>
|
|
<td>78</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2005</th>
|
|
<td>5.6</td>
|
|
<td>5.1</td>
|
|
<td>93</td>
|
|
<td>79</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2006</th>
|
|
<td>5.8</td>
|
|
<td>5.4</td>
|
|
<td>93</td>
|
|
<td>80</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2007</th>
|
|
<td>5.9</td>
|
|
<td>5.6</td>
|
|
<td>93</td>
|
|
<td>81</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2008</th>
|
|
<td>6.3</td>
|
|
<td>6.0</td>
|
|
<td>93</td>
|
|
<td>82</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2009</th>
|
|
<td>6.7</td>
|
|
<td>6.4</td>
|
|
<td>94</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2010</th>
|
|
<td>7.0</td>
|
|
<td>6.7</td>
|
|
<td>94</td>
|
|
<td>84</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2011</th>
|
|
<td>7.3</td>
|
|
<td>7.1</td>
|
|
<td>94</td>
|
|
<td>85</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2012</th>
|
|
<td>7.7</td>
|
|
<td>7.6</td>
|
|
<td>94</td>
|
|
<td>86</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2013</th>
|
|
<td>7.9</td>
|
|
<td>7.8</td>
|
|
<td>93</td>
|
|
<td>86</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2014</th>
|
|
<td>7.9</td>
|
|
<td>7.9</td>
|
|
<td>93</td>
|
|
<td>86</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="noNotes" colspan="5"> </td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<div class="firstNote">SOURCES: <abbr class="spell">SSA</abbr> <abbr class="spell">OCACT</abbr> and Office of Retirement Policy.</div>
|
|
<div class="note">NOTES: “Percentage” represents the fully insured share of the population aged <span class="nobr">62–66</span> residing in the United States (adjusted for Census undercount) and outlying areas; federal civilian employees and persons in the <abbr>U.S.</abbr> armed forces abroad and their dependents; noncitizens living abroad who are insured for Social Security benefits; and all other <abbr>U.S.</abbr> citizens abroad.</div>
|
|
<div class="lastNote">Age is as of year-end.</div>
|
|
</div>
|
|
</div>
|
|
<p>From 1984 through 2014, the number of fully insured men aged <span class="nobr">62–66</span> rose substantially, from 4.5 million to 7.9 million. However, because the <abbr class="spell">LFPR</abbr> among men younger than 55 has been slowly but steadily declining for much of the last half-century, the percentage of men aged <span class="nobr">62–66</span> who are fully insured did not increase as it did among women in that age group. From 1984 through 2014, the proportion of men aged <span class="nobr">62–66</span> who were fully insured for retirement benefits averaged 92 percent and ranged from 91 percent in the early 1990s to 94 percent from 2009 through 2012.</p>
|
|
<h2>Social Security Retired-Worker Benefit Claims by Age</h2>
|
|
<p>Perhaps the most important consideration for Social Security–insured workers who are deciding whether to retire or to continue working is the potential amount of their benefit. Workers who have earned credit for at least 40 quarters of employment in jobs covered by Social Security can claim a retired-worker benefit at age 62, the earliest eligibility age. However, a worker who claims benefits before attaining full retirement age (<abbr class="spell">FRA</abbr>) receives permanently reduced benefits. <abbr class="spell">FRA</abbr>s differ depending on year of birth (Table 1). For people who attained age 62 before 2000 (born in 1937 or earlier), the <abbr class="spell">FRA</abbr> is 65. For individuals who turn 62 in 2016 (born in 1954), the <abbr class="spell">FRA</abbr> is 66. For individuals born in each successive year during the period <span class="nobr">1955–1960,</span> the <abbr class="spell">FRA</abbr> is 2 months older than that for members of the preceding birth-year cohort, such that the <abbr class="spell">FRA</abbr> for individuals who attain age 62 in 2022 or later (born in 1960 or later) is 67. Delayed retirement credits (<abbr class="spell">DRC</abbr>s) permanently increase the monthly Social Security benefit for workers who claim after reaching <abbr class="spell">FRA</abbr>. <abbr class="spell">DRC</abbr>s accumulate with each month that claiming is deferred until the worker reaches age 70.</p>
|
|
<div class="table" id="table1">
|
|
<table class="textTable">
|
|
<caption><span class="tableNumber">Table 1. </span>Social Security <abbr class="spell">FRA</abbr>, by year of birth</caption>
|
|
<colgroup span="1" style="width:10em"></colgroup>
|
|
<colgroup span="1" style="width:12em"></colgroup>
|
|
<colgroup span="2" style="width:12em"></colgroup>
|
|
<thead>
|
|
<tr>
|
|
<th rowspan="2" class="stubHeading" scope="colgroup">Year of birth</th>
|
|
<th rowspan="2" scope="colgroup"><abbr class="spell">FRA</abbr></th>
|
|
<th colspan="2" class="spanner" scope="colgroup">Year in which individual attains—</th>
|
|
</tr>
|
|
<tr>
|
|
<th scope="col">Age 62</th>
|
|
<th scope="col"><abbr class="spell">FRA</abbr></th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr>
|
|
<th class="stub0" scope="row">1937 or earlier</th>
|
|
<td>65</td>
|
|
<td>1999 or earlier</td>
|
|
<td>2002 or earlier</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1938</th>
|
|
<td>65 and 2 months</td>
|
|
<td>2000</td>
|
|
<td>2003 or 2004</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1939</th>
|
|
<td>65 and 4 months</td>
|
|
<td>2001</td>
|
|
<td>2004 or 2005</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1940</th>
|
|
<td>65 and 6 months</td>
|
|
<td>2002</td>
|
|
<td>2005 or 2006</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1941</th>
|
|
<td>65 and 8 months</td>
|
|
<td>2003</td>
|
|
<td>2006 or 2007</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1942</th>
|
|
<td>65 and 10 months</td>
|
|
<td>2004</td>
|
|
<td>2007 or 2008</td>
|
|
</tr>
|
|
<tr class="topPad1">
|
|
<th class="stub0" scope="row">1943</th>
|
|
<td>66</td>
|
|
<td>2005</td>
|
|
<td>2009</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1944</th>
|
|
<td>66</td>
|
|
<td>2006</td>
|
|
<td>2010</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1945</th>
|
|
<td>66</td>
|
|
<td>2007</td>
|
|
<td>2011</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1946</th>
|
|
<td>66</td>
|
|
<td>2008</td>
|
|
<td>2012</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1947</th>
|
|
<td>66</td>
|
|
<td>2009</td>
|
|
<td>2013</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1948</th>
|
|
<td>66</td>
|
|
<td>2010</td>
|
|
<td>2014</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1949</th>
|
|
<td>66</td>
|
|
<td>2011</td>
|
|
<td>2015</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1950</th>
|
|
<td>66</td>
|
|
<td>2012</td>
|
|
<td>2016</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1951</th>
|
|
<td>66</td>
|
|
<td>2013</td>
|
|
<td>2017</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1952</th>
|
|
<td>66</td>
|
|
<td>2014</td>
|
|
<td>2018</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1953</th>
|
|
<td>66</td>
|
|
<td>2015</td>
|
|
<td>2019</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1954</th>
|
|
<td>66</td>
|
|
<td>2016</td>
|
|
<td>2020</td>
|
|
</tr>
|
|
<tr class="topPad1">
|
|
<th class="stub0" scope="row">1955</th>
|
|
<td>66 and 2 months</td>
|
|
<td>2017</td>
|
|
<td>2021 or 2022</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1956</th>
|
|
<td>66 and 4 months</td>
|
|
<td>2018</td>
|
|
<td>2022 or 2023</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1957</th>
|
|
<td>66 and 6 months</td>
|
|
<td>2019</td>
|
|
<td>2023 or 2024</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1958</th>
|
|
<td>66 and 8 months</td>
|
|
<td>2020</td>
|
|
<td>2024 or 2025</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1959</th>
|
|
<td>66 and 10 months</td>
|
|
<td>2021</td>
|
|
<td>2025 or 2026</td>
|
|
</tr>
|
|
<tr class="topPad1">
|
|
<th class="stub0" scope="row">1960 or later</th>
|
|
<td>67</td>
|
|
<td>2022 or later</td>
|
|
<td>2027 or later</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="onlyNote" colspan="4">SOURCE: <abbr class="spell">SSA</abbr>.</td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<p>In the <i>Annual Statistical Supplement to the Social Security Bulletin</i> (or simply the <i>Annual Statistical Supplement</i>), <abbr class="spell">SSA</abbr> publishes data on the number of claims for retired-worker benefits filed by men and women aged 62 or older. From these statistics, one can calculate the percentage of all claims in a given year that were filed by individuals of a given age. The numerator of this fraction is the number of men (or women) of a particular age who claimed retired-worker benefits in the year and the denominator is the total number of claims for retired-worker benefits by all fully insured men (or women) aged 62 or older in that year.<sup><a href="#mn4" id="mt4">4</a></sup> Another way to look at the distribution of claims by age is to calculate the percentage of Social Security–insured individuals of a given age who claimed benefits in a given year. The numerator for that calculation is the number of men (or women) of a particular age who claimed retired-worker benefits in the given year and the denominator is the total number of fully insured men (or women) <i>of that age</i> in that year. In other words, the first method calculates the probability that a man or woman who claimed benefits in a given year was, for example, 62 years old, and the second method calculates the probability that a fully insured man or woman aged 62 in a given year claimed benefits in that year.</p>
|
|
<p>The two methods will yield similar results if the number of people in each age group is roughly similar from year to year. However, if the number of people of a particular age changes substantially over time, results will differ between the two methods (Munnell and Chen 2015). For example, if the population of 62-year-old Social Security–insured men fell from one year to the next but the percentage of 62-year-old men who claimed retired-worker benefits did not change, the first method would show a year-to-year decline in <i>claims filed by 62-year-old men as a percentage of all claims filed by men</i>. The second method, on the other hand, would show no change in the <i>percentage of 62-year-old men who claimed benefits</i>.</p>
|
|
<p>Congress can affect the percentage of eligible individuals of a given age who claim benefits by changing the laws that govern the benefit levels available at the earliest eligibility age and at <abbr class="spell">FRA</abbr> (or later). For example, by replacing the formerly universal <abbr class="spell">FRA</abbr> of 65 with phased increases in <abbr class="spell">FRA</abbr>s affecting people born after 1937, Congress increased the financial incentive to delay claiming until after age 62. By contrast, one age group's share of all claims filed in a given year depends on past demographic trends—such as the relative sizes of adjacent birth cohorts—as well as on the financial incentives that influence individual choices. Consequently, the share of fully insured individuals of a given age who file benefit claims in a given year presents a clearer picture of claiming trends than does the share of insured individuals of all ages who file at that given age in that year.</p>
|
|
<p>Charts <span class="nobr">3–5</span> show, for each of the six <span class="nobr">5-year</span> intervals constituting the period <span class="nobr">1985–2014,</span> the number of fully insured men and women eligible to claim retired-worker benefits, the number who claimed benefits, and the percentage of eligible individuals who claimed (the “claiming rate”) at ages 62, 65, and 66. Those ages represent, respectively, the earliest eligibility age for retired-worker benefits, the <abbr class="spell">FRA</abbr> for individuals born before 1938, and the <abbr class="spell">FRA</abbr> for those born during the period <span class="nobr">1943–1954.</span> (The <abbr class="spell">FRA</abbr>s for individuals born during <span class="nobr">1938–1942</span> vary in <span class="nobr">2-month</span> increments; see <a href="#table1">Table 1</a>.) Because the charts reflect end-of-year ages, they depict the claiming experience of discrete annual birth cohorts.<sup><a href="#mn5" id="mt5">5</a></sup></p>
|
|
<p>The data in Charts <span class="nobr">3–5</span> are the annual averages for each <span class="nobr">5-year</span> interval. Using annual averages reduces the effects of random year-to-year variations in claims. The ratio of claims to eligible persons (the claiming rate) represents the proportion of those “at risk” of claiming retired-worker benefits at each age who did claim benefits at that age. To be at risk of claiming a retired-worker benefit, an individual must (1) have reached age 62; (2) be fully insured for retired-worker benefits; and (3) not already be receiving retired-worker, spouse, <span class="nobr">widow(er),</span> or disabled-worker benefits.<sup><a href="#mn6" id="mt6">6</a></sup> Among individuals in a given birth cohort, the number at risk of becoming new retired-worker beneficiaries is largest in the year when they attain age 62. At age 62, individuals who are fully insured and who are not receiving disabled-worker benefits can choose to claim retired-worker benefits. When members of the same birth cohort attain age 63, those who remain at risk of becoming retired-worker beneficiaries consist of all who (1) are fully insured; (2) are not receiving disabled-worker, spouse, or <span class="nobr">widow(er)</span> benefits; and (3) did not claim retired-worker benefits at age 62. The remainder of this article refers to individuals who meet the applicable three conditions, and are therefore at risk of claiming retired-worker benefits, as <i>eligible</i> individuals.</p>
|
|
<p>Charts <span class="nobr">3–5</span> show that the pattern of claims by age changed after 2000. Two revisions to the Social Security Act contributed to that change. First, the Social Security Amendments of 1983 (Public Law [<abbr>P.L.</abbr>] <span class="nobr">98-21)</span> raised the <abbr class="spell">FRA</abbr> incrementally from 65 to 66 for individuals born during the period <span class="nobr">1938–1943,</span> thereby affecting people who would be reaching age 62 over a <span class="nobr">6-year</span> period beginning in 2000. As the <abbr class="spell">FRA</abbr> increased across birth cohorts, the potential reductions to benefits payable for those who claimed before reaching <abbr class="spell">FRA</abbr> increased. For example, the benefit payable at age 62 decreased from 80 percent of the amount payable at <abbr class="spell">FRA</abbr> for a person born in 1937 to 75 percent for a person born in 1943. This reduction created a financial incentive for workers in later birth cohorts to delay claiming until after age 62. Second, the Senior Citizens' Freedom to Work Act of 2000 (<abbr>P.L.</abbr> <span class="nobr">106-182)</span> repealed the retirement earnings test (<abbr class="spell">RET</abbr>) for a beneficiary who has reached <abbr class="spell">FRA</abbr>.<sup><a href="#mn7" id="mt7">7</a></sup> As a result, since January 1, 2000, the benefits of workers who have attained <abbr class="spell">FRA</abbr> have not been reduced by any portion of their continued earnings, regardless of the amount they earn. Thus, as of that date, workers who had attained <abbr class="spell">FRA</abbr> but had deferred claiming retired-worker benefits because the benefit amount would have been reduced by the <abbr class="spell">RET</abbr> now had incentive to apply for benefits immediately.</p>
|
|
<p>Chart 3 shows the number of 62-year-old men and women eligible to claim retired-worker benefits, the number who claimed retired-worker benefits, and the percentage of eligible individuals who claimed retired-worker benefits over six intervals from 1985 through 2014. As noted earlier, the data represent annual averages. The outstanding characteristics of Chart 3 are two <span class="nobr">post-2000</span> trends: the increase in the number of persons eligible for retired-worker benefits and the decline in the claiming rate among eligible individuals. The increase in the number of 62-year-olds who were eligible for retired-worker benefits resulted mainly from the gradual increase in the size of birth cohorts starting with the late 1930s and continuing with the baby boom beginning in 1946. The decline in the claiming rate among 62-year-olds coincided with the older <abbr class="spell">FRA</abbr>s for workers who were born after 1937 and thus attained age 62 after 1999.</p>
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<div class="chartCenter">
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<div class="chart700" id="chart3">
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<div class="title">Chart 3.<br>Annual average number of men and women aged 62 eligible for and claiming retired-worker benefits, various periods <span class="nobr">1985–2014</span></div>
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<div class="scrollChart"><img src="v76n4p1-chart03.gif" alt="Two bar-with-line-overlay charts, one for men and one for women, with tabular version below." width="689" height="793" /></div>
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<div class="table altTable"><a class="altToggle" href="">Show as table</a>
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<table>
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<caption><span class="tableNumber">Table equivalent for Chart 3. </span>Annual average number of men and women aged 62 eligible for and claiming retired-worker benefits, various periods <span class="nobr">1985–2014</span></caption>
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<colgroup span="1" style="width:5em"></colgroup>
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<colgroup span="2" style="width:6em"></colgroup>
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<colgroup span="1" style="width:6em"></colgroup>
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<thead>
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<tr>
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<th rowspan="2" class="stubHeading" scope="colgroup">Year range</th>
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<th colspan="2" class="spanner" scope="colgroup">Number (in thousands)</th>
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<th rowspan="2" scope="colgroup">Claiming rate (%)</th>
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</tr>
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<tr>
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<th scope="col">Eligible</th>
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<th scope="col">Claiming</th>
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</tr>
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</thead>
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<tbody>
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<tr>
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<td> </td>
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<th colspan="3" class="panel" scope="rowgroup">Men</th>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1985–1989</span></th>
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<td>865</td>
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<td>364</td>
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<td>42.1</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1990–1994</span></th>
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<td>831</td>
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<td>371</td>
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<td>44.6</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1995–1999</span></th>
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<td>819</td>
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<td>361</td>
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<td>44.1</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2000–2004</span></th>
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<td>952</td>
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<td>376</td>
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<td>39.5</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2005–2009</span></th>
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<td>1,196</td>
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<td>403</td>
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<td>33.7</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2010–2014</span></th>
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<td>1,399</td>
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<td>418</td>
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<td>29.9</td>
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</tr>
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<tr>
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<td> </td>
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<th colspan="3" class="panel" scope="rowgroup">Women</th>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1985–1989</span></th>
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<td>636</td>
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<td>335</td>
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<td>52.6</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1990–1994</span></th>
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<td>631</td>
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<td>320</td>
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<td>50.7</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1995–1999</span></th>
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<td>653</td>
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<td>327</td>
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<td>50.0</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2000–2004</span></th>
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<td>808</td>
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<td>360</td>
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<td>44.5</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2005–2009</span></th>
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<td>1,080</td>
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<td>412</td>
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<td>38.1</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2010–2014</span></th>
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<td>1,347</td>
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<td>447</td>
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<td>33.2</td>
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</tr>
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</tbody>
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<tfoot>
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<tr>
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<td class="noNotes" colspan="4"> </td>
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</tr>
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</tfoot>
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</table>
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</div>
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<div class="firstNote">SOURCES: <abbr class="spell">SSA</abbr> <abbr class="spell">OCACT</abbr> and Office of Retirement Policy.</div>
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<div class="note">NOTES: Data are for men and women aged 62 at year-end.</div>
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<div class="note">“Eligible” population is the number fully insured at the beginning of the given year minus the number who are already receiving retired-worker, <span class="nobr">widow(er),</span> or spouse benefits.</div>
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<div class="note">“Claiming” population is the number of new awards in force, including those withheld or otherwise suspended.</div>
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<div class="lastNote">Claiming rates are calculated using unrounded numbers.</div>
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</div>
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</div>
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<p>During <span class="nobr">1985–1989,</span> an annual average of 865,000 men were eligible to claim retired-worker benefits at age 62 and an average of 364,000 eligible 62-year-old men (42.1 percent) claimed benefits. In the next two <span class="nobr">5-year</span> intervals <span class="nobr">(1990–1994</span> and <span class="nobr">1995–1999),</span> the number of eligible 62-year-old men declined slightly and the proportion of eligible 62-year-old men who applied for benefits rose to about 44 percent. After 2000, the number of eligible 62-year-old men rose sharply, averaging 952,000 per year during the <span class="nobr">2000–2004</span> interval, 1,196,000 per year during <span class="nobr">2005–2009,</span> and 1,399,000 per year during <span class="nobr">2010–2014.</span> The number of claims filed by men at age 62 increased by much less (in both absolute and relative terms) than did the number of men who were eligible, so the proportion of eligible 62-year-old men who claimed benefits trended steadily downward. From <span class="nobr">1995–1999</span> to <span class="nobr">2000–2004,</span> the proportion of eligible 62-year-old men who claimed benefits fell by nearly 5 percentage points, from 44.1 percent to 39.5 percent. Over the next two <span class="nobr">5-year</span> intervals, the proportion of eligible 62-year-old men who claimed benefits continued to fall, to 33.7 percent in <span class="nobr">2005–2009</span> and 29.9 percent in <span class="nobr">2010–2014.</span></p>
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<p>The trend in claiming rates across all six intervals among eligible 62-year-old women was similar to that for men, but the decline was even steeper. During <span class="nobr">1985–1989,</span> an annual average of 636,000 women were eligible to claim retired-worker benefits at age 62 and an average of 335,000 eligible 62-year-old women (52.6 percent) did so. In the next two <span class="nobr">5-year</span> intervals, the number of eligible 62-year-old women changed relatively little, and the claiming rate among those women fell slightly, to about 50 percent. After 2000, the number of eligible 62-year-old women rose in even greater proportions than did the number of eligible 62-year-old men, from an average of 808,000 per year during <span class="nobr">2000–2004</span> to an annual average of 1,347,000 during <span class="nobr">2010–2014.</span> As with men, the number of women who filed claims at age 62 increased by much less, in both absolute and relative terms, than the number who were eligible, which caused the claiming rate to decline. From <span class="nobr">1995–1999</span> through <span class="nobr">2000–2004,</span> the proportion of eligible 62-year-old women who claimed benefits fell by 5.5 percentage points, from 50.0 percent to 44.5 percent. Over the next two <span class="nobr">5-year</span> intervals, the proportion of eligible 62-year-old women who claimed benefits continued to fall, to 38.1 percent in <span class="nobr">2005–2009</span> and 33.2 percent in <span class="nobr">2010–2014.</span></p>
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<p>As the number of members of a birth cohort who have claimed retired-worker benefits accumulates with each additional year, the number of those who remain eligible to file a new retired-worker claim falls. In Chart 4, the number of men and women who are still eligible to claim retired-worker benefits at age 65 excludes those who claimed benefits at ages <span class="nobr">62–64,</span> and the number of men and women who are eligible to claim at age 66 (Chart 5) excludes all who claimed at ages <span class="nobr">62–65.</span> Chart 4 shows that in <span class="nobr">2010–2014,</span> an average of 606,000 men remained eligible to claim retired-worker benefits during the year they attained age 65. An average of 117,000 men claimed retired-worker benefits in the year they attained age 65. Therefore, over the 5 years from 2010 through 2014, 19.3 percent of eligible 65-year-old men claimed retired-worker benefits each year, on average.</p>
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<div class="chartCenter">
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<div class="chart700" id="chart4">
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<div class="title">Chart 4.<br>Annual average number of men and women aged 65 eligible for and claiming retired-worker benefits, various periods <span class="nobr">1985–2014</span></div>
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<div class="scrollChart"><img src="v76n4p1-chart04.gif" alt="Two bar-with-line-overlay charts, one for men and one for women, with tabular version below." width="689" height="790" /></div>
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<div class="table altTable"><a class="altToggle" href="">Show as table</a>
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<table>
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<caption><span class="tableNumber">Table equivalent for Chart 4. </span>Annual average number of men and women aged 65 eligible for and claiming retired-worker benefits, various periods <span class="nobr">1985–2014</span></caption>
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<colgroup span="1" style="width:5em"></colgroup>
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<colgroup span="2" style="width:6em"></colgroup>
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<colgroup span="1" style="width:6em"></colgroup>
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<thead>
|
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<tr>
|
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<th rowspan="2" class="stubHeading" scope="colgroup">Year range</th>
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<th colspan="2" class="spanner" scope="colgroup">Number (in thousands)</th>
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<th rowspan="2" scope="colgroup">Claiming rate (%)</th>
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</tr>
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<tr>
|
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<th scope="col">Eligible</th>
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<th scope="col">Claiming</th>
|
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</tr>
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</thead>
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<tbody>
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<tr>
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<td> </td>
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<th colspan="3" class="panel" scope="rowgroup">Men</th>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1985–1989</span></th>
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<td>289</td>
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<td>213</td>
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<td>73.8</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1990–1994</span></th>
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<td>271</td>
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<td>201</td>
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<td>73.9</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1995–1999</span></th>
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<td>253</td>
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<td>176</td>
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<td>69.5</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2000–2004</span></th>
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<td>300</td>
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<td>243</td>
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<td>81.0</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2005–2009</span></th>
|
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<td>442</td>
|
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<td>142</td>
|
|
<td>32.1</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2010–2014</span></th>
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<td>606</td>
|
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<td>117</td>
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<td>19.3</td>
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</tr>
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<tr>
|
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<td> </td>
|
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<th colspan="3" class="panel" scope="rowgroup">Women</th>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1985–1989</span></th>
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<td>130</td>
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<td>118</td>
|
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<td>90.8</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1990–1994</span></th>
|
|
<td>137</td>
|
|
<td>122</td>
|
|
<td>88.7</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1995–1999</span></th>
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<td>152</td>
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<td>119</td>
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<td>78.8</td>
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</tr>
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<tr>
|
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<th class="stub0" scope="row"><span class="nobr">2000–2004</span></th>
|
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<td>192</td>
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<td>159</td>
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<td>82.8</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2005–2009</span></th>
|
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<td>317</td>
|
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<td>118</td>
|
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<td>37.3</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">2010–2014</span></th>
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<td>495</td>
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<td>116</td>
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<td>23.4</td>
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</tr>
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</tbody>
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<tfoot>
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<tr>
|
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<td class="noNotes" colspan="4"> </td>
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</tr>
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</tfoot>
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</table>
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</div>
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<div class="firstNote">SOURCES: <abbr class="spell">SSA</abbr> <abbr class="spell">OCACT</abbr> and Office of Retirement Policy.</div>
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<div class="note">NOTES: Data are for men and women aged 65 at year-end.</div>
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<div class="note">“Eligible” population is the number fully insured at the beginning of the given year minus the number who are already receiving retired-worker benefits (including those converted from disabled-worker benefits at <abbr class="spell">FRA</abbr>), <span class="nobr">widow(er)</span> benefits, or spouse benefits.</div>
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<div class="note">“Claiming” population is the number of new awards in force, including those withheld or otherwise suspended.</div>
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<div class="lastNote">Claiming rates are calculated using unrounded numbers.</div>
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</div>
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</div>
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<p>The outstanding characteristics of Chart 4 are the increase in the average annual number of 65-year-olds who were eligible for retired-worker benefits after 2000 and the concurrent decline in the percentage of eligible individuals who claimed benefits at age 65. From <span class="nobr">1985–1989</span> through <span class="nobr">1995–1999,</span> both the number of men who were still eligible to claim retired-worker benefits at age 65 and the number who claimed benefits in the year they turned 65 steadily declined. Across those intervals, the average annual number of eligible 65-year-old men fell from 289,000 to 253,000 and the average annual number of new claims fell from 213,000 to 176,000. Nevertheless, the percentage of eligible 65-year-old men who claimed benefits declined only slightly, from 73.8 percent to 69.5 percent.</p>
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<p>After 2000, the average annual number of men who remained eligible to claim retired-worker benefits at age 65 rose sharply, more than doubling from 300,000 in the <span class="nobr">2000–2004</span> interval to 606,000 in the <span class="nobr">2010–2014</span> interval. In the same span, the average number of men who claimed retired-worker benefits in the year that they attained age 65 steadily declined, from 243,000 in the <span class="nobr">2000–2004</span> interval to 117,000 in the <span class="nobr">2010–2014</span> interval. Because the number of eligible 65-year-old men was rising while the number of men who claimed at age 65 was falling, the claiming rate fell sharply after 2000. The proportion declined from an annual average of 81.0 percent in <span class="nobr">2000–2004</span> to 32.1 percent in <span class="nobr">2005–2009</span> and just 19.3 percent in <span class="nobr">2010–2014.</span></p>
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<p>Preceding that <span class="nobr">15-year</span> decline, the proportion of eligible 65-year-old men who claimed benefits had risen briefly, from 69.5 percent in <span class="nobr">1995–1999</span> to 81.0 percent in <span class="nobr">2000–2004.</span> This increase is attributable in part to the repeal of the <abbr class="spell">RET</abbr> in 2000 for beneficiaries who had reached <abbr class="spell">FRA</abbr>. The decline to 32.1 percent in the next <span class="nobr">5-year</span> interval and to 19.3 percent in the <span class="nobr">2010–2014</span> interval was most likely due to the increase in the <abbr class="spell">FRA</abbr> from 65 to 66 for workers who were born after 1937 and thus attained age 62 after 1999.</p>
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<p>Among 65-year-old women, the trend in claiming rates across intervals differed only slightly from the trend among men of the same age. Although the number of eligible 65-year-old men declined from <span class="nobr">1985–1989</span> to <span class="nobr">1995–1999,</span> it rose slightly among women, from an annual average of 130,000 in the former interval to 152,000 in the latter. The average annual number of eligible 65-year-old women who claimed benefits remained virtually unchanged at about 120,000 in the three earliest intervals. As a result, the proportion of eligible 65-year-old women who claimed retired-worker benefits in the year they attained age 65 fell from an annual average of 90.8 percent in <span class="nobr">1985–1989</span> to 88.7 percent in <span class="nobr">1990–1994</span> and 78.8 percent in <span class="nobr">1995–1999.</span></p>
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<p>After 2000, the number of 65-year-old women eligible to claim retired-worker benefits rose in greater proportions than the number of eligible 65-year-old men, more than doubling from an average of 192,000 per year in <span class="nobr">2000–2004</span> to 495,000 in <span class="nobr">2010–2014.</span> Over the same span, the annual average number of claims filed by women at age 65 fell from 159,000 to 116,000. Consequently, the proportion of eligible 65-year-old women who claimed retired-worker benefits fell from an annual average of 82.8 percent in <span class="nobr">2000–2004</span> to 37.3 percent in <span class="nobr">2005–2009</span> and 23.4 percent in <span class="nobr">2010–2014.</span> The increase in the number of eligible 65-year-old women after 2000 and the decline in the proportion of eligible women who claimed benefits at age 65 coincided with the increase in the <abbr class="spell">FRA</abbr> from 65 to 66 for birth cohorts that reached age 62 in 2000 and later years.</p>
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<p>Most men who are fully insured for retirement benefits have already claimed those benefits by the time they reach age 66. For example, in 1985, an estimated 959,000 fully insured men in the 1923 birth cohort reached age 62 (not shown). From 1985 through 1988—when they were between the ages of 62 and 65—764,000 of those men claimed retired-worker benefits. When the 1923 birth cohort attained age 66 in 1989, only 143,000 of those who were still living and were fully insured had not claimed their benefits.</p>
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<p>From 1985 through 1989, an annual average of 147,000 66-year-old men were eligible to claim retired-worker benefits (Chart 5). On average, 38,000 66-year-old men—26.0 percent of those who were eligible—claimed benefits in the year they attained age 66. In the following interval, <span class="nobr">1990–1994,</span> annual averages of 125,000 66-year-old men were eligible to claim retired-worker benefits and 41,000 (33.0 percent) did so. The annual average number of eligible 66-year-old men was also 125,000 in <span class="nobr">1995–1999,</span> but the number who claimed retired-worker benefits at age 66 fell to 36,000, causing the claiming rate to fall to 28.7 percent.</p>
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<div class="chartCenter">
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<div class="chart700" id="chart5">
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<div class="title">Chart 5.<br>Annual average number of men and women aged 66 eligible for and claiming retired-worker benefits, various periods <span class="nobr">1985–2014</span></div>
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<div class="scrollChart"><img src="v76n4p1-chart05.gif" alt="Two bar-with-line-overlay charts, one for men and one for women, with tabular version below." width="689" height="792" /></div>
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<div class="table altTable"><a class="altToggle" href="">Show as table</a>
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<table>
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<caption><span class="tableNumber">Table equivalent for Chart 5. </span>Annual average number of men and women aged 66 eligible for and claiming retired-worker benefits, various periods <span class="nobr">1985–2014</span></caption>
|
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<colgroup span="1" style="width:5em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<colgroup span="1" style="width:6em"></colgroup>
|
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<thead>
|
|
<tr>
|
|
<th rowspan="2" class="stubHeading" scope="colgroup">Year range</th>
|
|
<th colspan="2" class="spanner" scope="colgroup">Number (in thousands)</th>
|
|
<th rowspan="2" scope="colgroup">Claiming rate (%)</th>
|
|
</tr>
|
|
<tr>
|
|
<th scope="col">Eligible</th>
|
|
<th scope="col">Claiming</th>
|
|
</tr>
|
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</thead>
|
|
<tbody>
|
|
<tr>
|
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<td> </td>
|
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<th colspan="3" class="panel" scope="rowgroup">Men</th>
|
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1985–1989</span></th>
|
|
<td>147</td>
|
|
<td>38</td>
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<td>26.0</td>
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</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1990–1994</span></th>
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<td>125</td>
|
|
<td>41</td>
|
|
<td>33.0</td>
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|
</tr>
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<tr>
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<th class="stub0" scope="row"><span class="nobr">1995–1999</span></th>
|
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<td>125</td>
|
|
<td>36</td>
|
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<td>28.7</td>
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</tr>
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<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">2000–2004</span></th>
|
|
<td>59</td>
|
|
<td>40</td>
|
|
<td>68.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">2005–2009</span></th>
|
|
<td>257</td>
|
|
<td>203</td>
|
|
<td>79.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">2010–2014</span></th>
|
|
<td>457</td>
|
|
<td>309</td>
|
|
<td>67.8</td>
|
|
</tr>
|
|
<tr>
|
|
<td> </td>
|
|
<th colspan="3" class="panel" scope="rowgroup">Women</th>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">1985–1989</span></th>
|
|
<td>51</td>
|
|
<td>19</td>
|
|
<td>36.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">1990–1994</span></th>
|
|
<td>48</td>
|
|
<td>21</td>
|
|
<td>45.2</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">1995–1999</span></th>
|
|
<td>58</td>
|
|
<td>20</td>
|
|
<td>34.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">2000–2004</span></th>
|
|
<td>37</td>
|
|
<td>25</td>
|
|
<td>67.2</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">2005–2009</span></th>
|
|
<td>157</td>
|
|
<td>134</td>
|
|
<td>85.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row"><span class="nobr">2010–2014</span></th>
|
|
<td>337</td>
|
|
<td>218</td>
|
|
<td>64.6</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="noNotes" colspan="4"> </td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<div class="firstNote">SOURCES: <abbr class="spell">SSA</abbr> <abbr class="spell">OCACT</abbr> and Office of Retirement Policy.</div>
|
|
<div class="note">NOTES: Data are for men and women aged 66 at year-end.</div>
|
|
<div class="note">“Eligible” population is the number fully insured at the beginning of the given year minus the number who are already receiving retired-worker benefits (including those converted from disabled-worker benefits at <abbr class="spell">FRA</abbr>), <span class="nobr">widow(er)</span> benefits, or spouse benefits.</div>
|
|
<div class="note">“Claiming” population is the number of new awards in force, including those withheld or otherwise suspended.</div>
|
|
<div class="lastNote">Claiming rates are calculated using unrounded numbers.</div>
|
|
</div>
|
|
</div>
|
|
<p>In the <span class="nobr">2000–2004</span> interval, the number of 66-year-old men who were eligible to claim retired-worker benefits fell to an annual average of 59,000. One reason for the decline was that the repeal in 2000 of the <abbr class="spell">RET</abbr> for beneficiaries at <abbr class="spell">FRA</abbr> or older resulted in a spike in claims by men who were still working at age 65. On average, 40,000 eligible 66-year-old men (68.1 percent) claimed benefits each year during this interval. In <span class="nobr">2005–2009,</span> the average annual number of 66-year-old men who were eligible to claim retired-worker benefits rose to 257,000—an increase of nearly 200,000 from the previous interval—and the average annual number of claims by 66-year-old men rose to 203,000. Thus, from 2005 through 2009, an annual average of 79.1 percent of eligible 66-year-old men claimed retired-worker benefits. The number of 66-year-old men eligible to claim retired-worker benefits rose again to an annual average of 457,000 in <span class="nobr">2010–2014,</span> and the average annual number of claims filed by men who were 66 years old rose to 309,000. Thus, from 2010 through 2014, 67.8 percent of eligible 66-year-old men claimed retired-worker benefits on average.</p>
|
|
<p>The trend in claims for retired-worker benefits filed by women at age 66 was similar to the trend among men of the same age. From 1985 through 1989, annual averages of 51,000 women were eligible to claim retired-worker benefits at age 66 and 19,000 (36.7 percent) did so. The numbers of 66-year-old women who were eligible for and who claimed benefits both remained fairly stable in the two following intervals. As with men, the average annual number of eligible 66-year-old women fell in the <span class="nobr">2000–2004</span> interval. From 2005 through 2009, the average annual number of 66-year-old women who were eligible to claim retired-worker benefits rose to 157,000, an increase of 120,000 from the previous interval, and the average annual number of claims filed by 66-year-old women rose to 134,000. Thus, from 2005 through 2009, an annual average of 85.8 percent of eligible 66-year-old women claimed retired-worker benefits. The number of 66-year-old women eligible to claim retired-worker benefits rose further in <span class="nobr">2010–2014,</span> to an annual average of 337,000, and the average annual number of claims filed by women rose to 218,000. Thus, from 2010 through 2014, 64.6 percent of eligible 66-year-old women claimed retired-worker benefits.</p>
|
|
<p>The data on which Charts <span class="nobr">3–5</span> are based categorize individuals by their age at the end of the year. This is equivalent to grouping individuals by year of birth. For example, everyone whose 62<sup>nd</sup> birthday occurs during 2016 was born in 1954, and everyone who was born in 1954 will be 62 years old on December 31, 2016. People who were born in 1943 comprise the first birth cohort with the <abbr class="spell">FRA</abbr> of 66, the age they attained in 2009. The annual claims data from which the <span class="nobr">5-year</span> annual averages in Charts <span class="nobr">3–5</span> are calculated show that the proportion of 66-year-old individuals who claimed retired-worker benefits began to rise in 2004, 5 years before the 1943 birth cohort reached age 66. This is due to the phased increase of the <abbr class="spell">FRA</abbr> from 65 to 66 in <span class="nobr">2-month</span> increments affecting successive birth cohorts from 1938 through 1943, which meant that the claimant's month of birth affected the year in which he or she attained <abbr class="spell">FRA</abbr> (see <a href="#table1">Table 1</a>). Among people who were born in 1938, for example, individuals with birthdays in November and December did not attain their <abbr class="spell">FRA</abbr> of 65 years and 2 months until 2004—the year in which they also attained age 66. Consequently, the percentage of individuals who were not already beneficiaries and who claimed retired-worker benefits at age 66 began rising several years before the members of the 1943 birth cohort attained their <abbr class="spell">FRA</abbr> of 66.</p>
|
|
<h2>Disabled-Worker and Retired-Worker Beneficiaries as Percentages of the Population</h2>
|
|
<p>Chart 6 illustrates trends over the period <span class="nobr">1985–2014</span> in retired-worker beneficiaries as percentages of the fully insured populations aged <span class="nobr">62–64,</span> 65, and 66. Because a decline in claiming retired-worker benefits before reaching <abbr class="spell">FRA</abbr> might have been offset in part by increasing claiming rates for Social Security Disability Insurance (<abbr class="spell">DI</abbr>) benefits, Chart 6 also shows <abbr class="spell">DI</abbr> disabled-worker beneficiaries as percentages of the insured populations aged <span class="nobr">62–64</span> and 65.<sup><a href="#mn8" id="mt8">8</a></sup> The numerator of the percentages in Chart 6 is the number of men and women, respectively, in each age group who received retired-worker benefits or <abbr class="spell">DI</abbr> benefits in a particular year. The denominator is the number of beneficiaries plus the number of fully insured men and women in each age group who were not beneficiaries.<sup><a href="#mn9" id="mt9">9</a></sup> As in Charts <span class="nobr">3–5,</span> the <span class="nobr">pre-2000</span> trends illustrated in Chart 6 differ from those for the years after 2000.</p>
|
|
<div class="chartCenter">
|
|
<div class="chart700" id="chart6">
|
|
<div class="title">Chart 6.<br>Disabled-worker and retired-worker beneficiaries at selected ages as percentages of the insured population at those ages: By sex, <span class="nobr">1985–2014</span></div>
|
|
<div class="scrollChart"><img src="v76n4p1-chart06.gif" alt="Two line charts, one for men and one for women, with tabular version below." width="655" height="799" /></div>
|
|
<div class="table altTable"><a class="altToggle" href="">Show as table</a>
|
|
<table>
|
|
<caption><span class="tableNumber">Table equivalent for Chart 6. </span>Disabled-worker and retired-worker beneficiaries at selected ages as percentages of the insured population at those ages: By sex, <span class="nobr">1985–2014</span></caption>
|
|
<colgroup span="1" style="width:5em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<colgroup span="3" style="width:6em"></colgroup>
|
|
<thead>
|
|
<tr>
|
|
<th rowspan="2" class="stubHeading" scope="colgroup">Year</th>
|
|
<th colspan="2" class="spanner" scope="colgroup">Disabled worker</th>
|
|
<th colspan="3" class="spanner" scope="colgroup">Retired worker</th>
|
|
</tr>
|
|
<tr>
|
|
<th scope="col"><span class="nobr">62–64</span></th>
|
|
<th scope="col">65</th>
|
|
<th scope="col"><span class="nobr">62–64</span></th>
|
|
<th scope="col">65</th>
|
|
<th scope="col">66</th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr>
|
|
<td> </td>
|
|
<th colspan="5" class="panel" scope="rowgroup">Men</th>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1985</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>45</td>
|
|
<td>81</td>
|
|
<td>90</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1986</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>47</td>
|
|
<td>83</td>
|
|
<td>88</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1987</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>48</td>
|
|
<td>84</td>
|
|
<td>89</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1988</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>48</td>
|
|
<td>84</td>
|
|
<td>89</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1989</th>
|
|
<td>12</td>
|
|
<td>0</td>
|
|
<td>47</td>
|
|
<td>85</td>
|
|
<td>90</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1990</th>
|
|
<td>12</td>
|
|
<td>0</td>
|
|
<td>48</td>
|
|
<td>86</td>
|
|
<td>92</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1991</th>
|
|
<td>12</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>85</td>
|
|
<td>91</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1992</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>86</td>
|
|
<td>92</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1993</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>87</td>
|
|
<td>92</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1994</th>
|
|
<td>13</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>86</td>
|
|
<td>92</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1995</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>86</td>
|
|
<td>92</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1996</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>85</td>
|
|
<td>91</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1997</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>47</td>
|
|
<td>86</td>
|
|
<td>91</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1998</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>47</td>
|
|
<td>84</td>
|
|
<td>91</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1999</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>46</td>
|
|
<td>85</td>
|
|
<td>90</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2000</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>46</td>
|
|
<td>96</td>
|
|
<td>98</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2001</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>45</td>
|
|
<td>96</td>
|
|
<td>98</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2002</th>
|
|
<td>14</td>
|
|
<td>0</td>
|
|
<td>44</td>
|
|
<td>96</td>
|
|
<td>98</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2003</th>
|
|
<td>14</td>
|
|
<td>3</td>
|
|
<td>42</td>
|
|
<td>91</td>
|
|
<td>98</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2004</th>
|
|
<td>14</td>
|
|
<td>5</td>
|
|
<td>41</td>
|
|
<td>81</td>
|
|
<td>99</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2005</th>
|
|
<td>14</td>
|
|
<td>7</td>
|
|
<td>40</td>
|
|
<td>74</td>
|
|
<td>97</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2006</th>
|
|
<td>14</td>
|
|
<td>10</td>
|
|
<td>38</td>
|
|
<td>66</td>
|
|
<td>97</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2007</th>
|
|
<td>15</td>
|
|
<td>12</td>
|
|
<td>37</td>
|
|
<td>59</td>
|
|
<td>95</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2008</th>
|
|
<td>15</td>
|
|
<td>15</td>
|
|
<td>35</td>
|
|
<td>53</td>
|
|
<td>94</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2009</th>
|
|
<td>15</td>
|
|
<td>15</td>
|
|
<td>36</td>
|
|
<td>53</td>
|
|
<td>93</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2010</th>
|
|
<td>15</td>
|
|
<td>16</td>
|
|
<td>37</td>
|
|
<td>52</td>
|
|
<td>92</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2011</th>
|
|
<td>15</td>
|
|
<td>15</td>
|
|
<td>36</td>
|
|
<td>51</td>
|
|
<td>91</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2012</th>
|
|
<td>16</td>
|
|
<td>16</td>
|
|
<td>34</td>
|
|
<td>50</td>
|
|
<td>89</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2013</th>
|
|
<td>16</td>
|
|
<td>16</td>
|
|
<td>32</td>
|
|
<td>49</td>
|
|
<td>88</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2014</th>
|
|
<td>16</td>
|
|
<td>16</td>
|
|
<td>30</td>
|
|
<td>46</td>
|
|
<td>86</td>
|
|
</tr>
|
|
<tr>
|
|
<td> </td>
|
|
<th colspan="5" class="panel" scope="rowgroup">Women</th>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1985</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>77</td>
|
|
<td>82</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1986</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>51</td>
|
|
<td>78</td>
|
|
<td>80</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1987</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>51</td>
|
|
<td>77</td>
|
|
<td>81</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1988</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>51</td>
|
|
<td>77</td>
|
|
<td>80</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1989</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>51</td>
|
|
<td>78</td>
|
|
<td>81</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1990</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>51</td>
|
|
<td>79</td>
|
|
<td>82</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1991</th>
|
|
<td>8</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>78</td>
|
|
<td>82</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1992</th>
|
|
<td>9</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>79</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1993</th>
|
|
<td>9</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>80</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1994</th>
|
|
<td>9</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>79</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1995</th>
|
|
<td>9</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>79</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1996</th>
|
|
<td>10</td>
|
|
<td>0</td>
|
|
<td>50</td>
|
|
<td>79</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1997</th>
|
|
<td>10</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>80</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1998</th>
|
|
<td>11</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>79</td>
|
|
<td>84</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">1999</th>
|
|
<td>11</td>
|
|
<td>0</td>
|
|
<td>48</td>
|
|
<td>80</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2000</th>
|
|
<td>11</td>
|
|
<td>0</td>
|
|
<td>49</td>
|
|
<td>85</td>
|
|
<td>87</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2001</th>
|
|
<td>11</td>
|
|
<td>0</td>
|
|
<td>47</td>
|
|
<td>87</td>
|
|
<td>87</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2002</th>
|
|
<td>12</td>
|
|
<td>0</td>
|
|
<td>46</td>
|
|
<td>87</td>
|
|
<td>88</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2003</th>
|
|
<td>12</td>
|
|
<td>2</td>
|
|
<td>44</td>
|
|
<td>84</td>
|
|
<td>89</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2004</th>
|
|
<td>12</td>
|
|
<td>4</td>
|
|
<td>43</td>
|
|
<td>76</td>
|
|
<td>90</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2005</th>
|
|
<td>12</td>
|
|
<td>6</td>
|
|
<td>42</td>
|
|
<td>72</td>
|
|
<td>88</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2006</th>
|
|
<td>13</td>
|
|
<td>9</td>
|
|
<td>41</td>
|
|
<td>66</td>
|
|
<td>89</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2007</th>
|
|
<td>13</td>
|
|
<td>11</td>
|
|
<td>40</td>
|
|
<td>61</td>
|
|
<td>88</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2008</th>
|
|
<td>13</td>
|
|
<td>13</td>
|
|
<td>38</td>
|
|
<td>55</td>
|
|
<td>87</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2009</th>
|
|
<td>13</td>
|
|
<td>14</td>
|
|
<td>39</td>
|
|
<td>55</td>
|
|
<td>86</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2010</th>
|
|
<td>13</td>
|
|
<td>14</td>
|
|
<td>39</td>
|
|
<td>54</td>
|
|
<td>86</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2011</th>
|
|
<td>13</td>
|
|
<td>13</td>
|
|
<td>38</td>
|
|
<td>53</td>
|
|
<td>84</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2012</th>
|
|
<td>14</td>
|
|
<td>14</td>
|
|
<td>36</td>
|
|
<td>53</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2013</th>
|
|
<td>14</td>
|
|
<td>14</td>
|
|
<td>35</td>
|
|
<td>52</td>
|
|
<td>83</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="row">2014</th>
|
|
<td>14</td>
|
|
<td>14</td>
|
|
<td>33</td>
|
|
<td>50</td>
|
|
<td>81</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="noNotes" colspan="6"> </td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<div class="firstNote">SOURCES: <abbr class="spell">SSA</abbr> <abbr class="spell">OCACT</abbr> and Office of Retirement Policy.</div>
|
|
<div class="lastNote">NOTE: Age is as of year-end.</div>
|
|
</div>
|
|
</div>
|
|
<p>From 1985 through 1994, the proportion of fully insured men aged <span class="nobr">62–64</span> who received retired-worker benefits rose from 45 percent to 50 percent (Chart 6), after which it began to decline. By 2000, 46 percent of men aged <span class="nobr">62–64</span> were receiving retired-worker benefits. After 2000, that proportion fell more sharply, to 30 percent by 2014. Had the Great Recession not briefly interrupted the decline in <span class="nobr">2009–2011,</span> the proportion of men aged <span class="nobr">62–64</span> who received retired-worker benefits might have fallen even further by 2014. From 1985 through 2006, the proportion of men aged <span class="nobr">62–64</span> who received <abbr class="spell">DI</abbr> benefits fluctuated only within a narrow range of 12 percent to 14 percent. By 2014, that proportion had risen to 16 percent.</p>
|
|
<p>The increase in the proportion of men aged <span class="nobr">62–64</span> who received <abbr class="spell">DI</abbr> benefits and the decline in the proportion who received retired-worker benefits after 2000 coincided with the increase in the <abbr class="spell">FRA</abbr> from 65 to 66 for workers reaching age 65 in 2003 and later years. The increase in the proportion of men aged <span class="nobr">62–64</span> who received <abbr class="spell">DI</abbr> benefits was smaller than the decline in the proportion who received retired-worker benefits. In 1999, 14 percent of men aged <span class="nobr">62–64</span> received <abbr class="spell">DI</abbr> benefits and 46 percent received retired-worker benefits. By 2014, the proportion of men aged <span class="nobr">62–64</span> who received <abbr class="spell">DI</abbr> benefits had risen by 2 percentage points, to 16 percent. Over the same period, the proportion of men aged <span class="nobr">62–64</span> who received retired-worker benefits fell by 16 percentage points, to 30 percent.</p>
|
|
<p>Because <abbr class="spell">DI</abbr> benefits automatically convert to retired-worker benefits when the beneficiary reaches <abbr class="spell">FRA</abbr>, no one received <abbr class="spell">DI</abbr> benefits at age 65 before 2003. As the <abbr class="spell">FRA</abbr> was raised incrementally to 66 for persons born after 1937, some <abbr class="spell">DI</abbr> beneficiaries continued to receive disabled-worker benefits at age 65. As a result, between 2002 and 2009, the proportion of 65-year-old men who received <abbr class="spell">DI</abbr> benefits increased from 0 percent to 15 percent. The rate of increase then slowed. By 2014, 16 percent of fully insured 65-year-old men received <abbr class="spell">DI</abbr> benefits.</p>
|
|
<p>From 1985 through 1999, the proportion of 65-year-old men who received retired-worker benefits increased from 81 percent to 85 percent. The proportion rose sharply to 96 percent in 2000, partly in response to the repeal of the <abbr class="spell">RET</abbr> in that year for beneficiaries who had reached <abbr class="spell">FRA</abbr>. After 2002, the proportion of 65-year-old men receiving retired-worker benefits began to fall as the older <abbr class="spell">FRA</abbr>s for people born after 1937 affected greater shares of each successive birth cohort with each passing year. By 2014, the proportion of 65-year-old men who received retired-worker benefits had fallen to 46 percent. The increase in the proportion of 65-year-old men who received <abbr class="spell">DI</abbr> benefits did not fully offset the decline in the proportion who received retired-worker benefits after 2000. From 2002 through 2014, the proportion of 65-year-old men receiving <abbr class="spell">DI</abbr> benefits rose from 0 percent to 16 percent. Over the same period, the proportion of 65-year-old men who received retired-worker benefits fell by 50 percentage points, from 96 percent to 46 percent.</p>
|
|
<p>Year to year, an average of 91 percent of 66-year-old men received retired-worker benefits from 1985 through 1999. In 2000, the proportion jumped to 98 percent, partly in response to the repeal of the <abbr class="spell">RET</abbr> for beneficiaries who had reached <abbr class="spell">FRA</abbr>. From 2001 through 2004, the proportion of 66-year-old men who received retired-worker benefits remained stable. It began to decline thereafter, reaching 86 percent by 2014. <a href="#chart5">Chart 5</a> showed that the annual average number of men still eligible to claim retired-worker benefits at age 66 rose by nearly 200,000 between the <span class="nobr">2000–2004</span> and <span class="nobr">2005–2009</span> intervals and by another 200,000 between the <span class="nobr">2005–2009</span> and <span class="nobr">2010–2014</span> intervals. Although majorities of those men claimed their benefits at age 66, enough of them delayed their claims until age 67 or later to cause the proportion of 66-year-old men who were receiving retired-worker benefits to decline.</p>
|
|
<p>Among women aged <span class="nobr">62–66</span> (<a href="#chart6">Chart 6</a>), trends in the proportions who received <abbr class="spell">DI</abbr> benefits or retired-worker benefits were similar to the trends among men. The percentages of insured women who were receiving retired-worker benefits generally fell after 2000, and the declines exceeded the increases in the percentages who received <abbr class="spell">DI</abbr> benefits. From 1985 through 1999, a year-to-year average of 50 percent of fully insured women aged <span class="nobr">62–64</span> received retired-worker benefits—in that period, the proportion never rose above 51 percent or fell below 48 percent. From 2000 through 2014, the proportion of women aged <span class="nobr">62–64</span> who received retired-worker benefits fell from 49 percent to 33 percent. That decline occurred even as the proportion of women aged <span class="nobr">62–64</span> who were fully insured for retirement benefits was rising.</p>
|
|
<p>From 1985 through 1999, the proportion of fully insured women aged <span class="nobr">62–64</span> who received <abbr class="spell">DI</abbr> benefits rose from 8 percent to 11 percent. From 2000 through 2014, that proportion rose by 3 additional percentage points, to 14 percent. The increase from 1985 through 2014 in the percentage of women aged <span class="nobr">62–64</span> receiving <abbr class="spell">DI</abbr> benefits (8 percent to 14 percent) was proportionally greater than the increase from 13 percent to 16 percent among men, reflecting the growth in that period of the proportion of women insured for disability benefits (Pattison and Waldron 2013).</p>
|
|
<p>Another trend shared with men was that the increase in the proportion of women aged <span class="nobr">62–64</span> who received <abbr class="spell">DI</abbr> benefits was smaller than the decrease in the proportion who received retired-worker benefits. In 1999, 11 percent of women aged <span class="nobr">62–64</span> received <abbr class="spell">DI</abbr> benefits and 48 percent received retired-worker benefits. By 2014, the proportion who received <abbr class="spell">DI</abbr> benefits had risen by 3 percentage points (to 14 percent) and the proportion who were receiving retired-worker benefits fell by 15 percentage points (to 33 percent). As noted earlier, <abbr class="spell">DI</abbr> benefits are converted to retired-worker benefits when the beneficiary reaches <abbr class="spell">FRA</abbr>. Before 2002, all <abbr class="spell">DI</abbr> beneficiaries were reclassified as retired-worker beneficiaries at age 65. Because of the older <abbr class="spell">FRA</abbr>s affecting individuals who attained their <abbr class="spell">FRA</abbr> beginning in 2003, the proportion of 65-year-old women who received <abbr class="spell">DI</abbr> benefits increased from 0 percent in 2002 to 14 percent by 2014.</p>
|
|
<p>From 1985 through 1999, the proportion of 65-year-old women who received retired-worker benefits increased from 77 percent to 80 percent. The proportion rose to 85 percent in 2000, partly in response to the repeal in that year of the <abbr class="spell">RET</abbr> for beneficiaries who had reached <abbr class="spell">FRA</abbr>. After 2002, the proportion of 65-year-old women receiving retired-worker benefits began to fall as the <abbr class="spell">FRA</abbr> increased incrementally from 65 to 66 for people born after 1937. By 2014, the proportion of 65-year-old women who received retired-worker benefits had fallen to 50 percent. The increase of 14 percentage points in the proportion of 65-year-old women who received <abbr class="spell">DI</abbr> benefits from 2002 through 2014 did not offset the decline in the proportion who received retired-worker benefits (37 percentage points) over that same period.</p>
|
|
<p>Year to year, an average of 82 percent of fully insured 66-year-old women received retired-worker benefits from 1985 through 1999. From 1999 through 2004, the proportion rose from 83 percent to 90 percent, after which it began a gradual but sustained decline to 81 percent by 2014. The decline in the proportion of 66-year-old women who receive retired-worker benefits was similar in magnitude to the parallel decline among 66-year-old men. These declines may reflect both the trend toward later claiming of retirement benefits and the increase in labor force participation among Americans aged 65 or older.</p>
|
|
<h2>Conclusion</h2>
|
|
<p>This article highlights several important trends in labor force participation among older Americans and in the age at which people claim retirement benefits, including the following:</p>
|
|
<ul>
|
|
<li>Older Americans are working longer. From 1985 through 2015, the <abbr class="spell">LFPR</abbr> among individuals aged <span class="nobr">65–69</span> rose from 24 percent to 37 percent for men and from 14 percent to 28 percent for women.</li>
|
|
<li>Over the last 30 years, the proportion of individuals aged <span class="nobr">62–66</span> who were fully insured for Social Security retirement benefits remained stable at about 92 percent for men. For women, however, the proportion rose sharply, from 66 percent to 86 percent.</li>
|
|
<li>After 2000, the proportion of fully insured men and women who claimed retirement benefits at age 62 declined substantially. Among both men and women aged <span class="nobr">62–64,</span> the decline in the percentage who were receiving retired-worker benefits was greater than the increase in the percentage who were receiving <abbr class="spell">DI</abbr> benefits.</li>
|
|
</ul>
|
|
<h2 id="appA">Appendix A: Early Eligibility Age and <abbr class="spell">FRA</abbr></h2>
|
|
<p>The Social Security Act of 1935 set the age of eligibility for retired-worker benefits at 65. Social Security–insured workers have been able to claim retired-worker benefits as early as age 62 since 1956 (for women) and 1961 (for men), but the benefit amount is permanently reduced for individuals who claim before reaching the <abbr class="spell">FRA</abbr>. Individuals who claim benefits before attaining <abbr class="spell">FRA</abbr> receive benefits over a longer period, on average, than do those who claim at <abbr class="spell">FRA</abbr> or later. The benefit reduction for those who claim before reaching <abbr class="spell">FRA</abbr> is designed to make the present value of lifetime benefits equal for the average beneficiary, regardless of the age at which he or she claims. The Social Security Amendments of 1983 (<abbr>P.L.</abbr> <span class="nobr">98-21</span>) set the <abbr class="spell">FRA</abbr> for people born after 1937 at incrementally increasing steps from 65 to 67 (see <a href="#table1">Table 1</a>).</p>
|
|
<p>For individuals born before 1938, the <abbr class="spell">FRA</abbr> is 65. The 1983 amendments set the <abbr class="spell">FRA</abbr> for individuals born in 1938 at 65 and 2 months. For members of each successive birth cohort from 1939 to 1943, the <abbr class="spell">FRA</abbr> increases by 2 months. The <abbr class="spell">FRA</abbr> for people born from 1943 through 1954 is 66. Further incremental <abbr class="spell">FRA</abbr> increases affect individuals born during <span class="nobr">1955–1960,</span> and the <abbr class="spell">FRA</abbr> is 67 for people born in 1960 or later. Relative to a benefit claimed at <abbr class="spell">FRA</abbr>, the amount of a retired-worker benefit claimed at age 62 is reduced by 20 percent for individuals whose <abbr class="spell">FRA</abbr> is 65, by 25 percent for those whose <abbr class="spell">FRA</abbr> is 66, and by 30 percent for those whose <abbr class="spell">FRA</abbr> is 67. Thus, workers in later birth cohorts have increasing financial incentive to delay their claims until after age 62.</p>
|
|
<h2 id="appB">Appendix B: The <abbr class="spell">RET</abbr> and <abbr class="spell">DRC</abbr>s</h2>
|
|
<p>The Social Security <abbr class="spell">RET</abbr> reduces the benefits of retired-worker beneficiaries who are younger than <abbr class="spell">FRA</abbr> and have earnings that exceed certain thresholds. (Benefits withheld under the <abbr class="spell">RET</abbr> are eventually restored by means of an upward adjustment in the benefit amount beginning when the beneficiary attains <abbr class="spell">FRA</abbr>.) Until 2000, the earnings test applied to all beneficiaries younger than 70. The Senior Citizens' Freedom to Work Act (<abbr>P.L.</abbr> <span class="nobr">106-182)</span> eliminated the <abbr class="spell">RET</abbr> for people who had reached <abbr class="spell">FRA</abbr>, effective January 1, 2000. Workers who had attained their <abbr class="spell">FRA</abbr> as of that date but had deferred claiming Social Security benefits (because their earnings would have resulted in a benefit reduction) now had incentive to apply for benefits immediately. Thus, the repeal of the <abbr class="spell">RET</abbr> for workers who had reached <abbr class="spell">FRA</abbr> was followed by a temporary increase in benefit claims among persons aged <span class="nobr">65–69</span> who were working and had deferred claiming retired-worker benefits.</p>
|
|
<p>Workers who delay claiming benefits until after they reach <abbr class="spell">FRA</abbr> earn <abbr class="spell">DRC</abbr>s that permanently increase their monthly Social Security retired-worker benefit amount. <abbr class="spell">DRC</abbr>s thereby provide a financial incentive for workers to remain employed and defer claiming. In 1977, Congress set the <abbr class="spell">DRC</abbr> at 3 percent per year. This meant that benefits were permanently increased by 3 percent for each full year that a worker delayed claiming beyond age 65. However, 3 percent was less than actuarially fair as a permanent benefit increase, and thus did not provide a strong financial incentive to delay claiming beyond the <abbr class="spell">FRA</abbr>. The 1983 Social Security Amendments mandated a gradual increase in <abbr class="spell">DRC</abbr>s beginning in 1990. For persons born in 1943 or later, the <abbr class="spell">DRC</abbr> is 8 percent per year, which is actuarially fair for the average worker. The <abbr class="spell">LFPR</abbr> among both men and women aged <span class="nobr">65–69</span> has risen in recent years, and the proportion of men aged <span class="nobr">65–69</span> who receive Social Security retired-worker benefits has fallen. These trends may result in part from the additional incentive to defer claiming benefits that was created by the increase in <abbr class="spell">DRC</abbr>s.</p>
|
|
<div id="notes">
|
|
<h2>Notes</h2>
|
|
<p> <a href="#mt1" id="mn1">1</a> Some people who report that they are neither employed nor looking for work may be employed in the “underground” or “shadow” economy.</p>
|
|
<p> <a href="#mt2" id="mn2">2</a> A number of recent studies have examined the demographic, social, and economic factors that have contributed to the increase in the <abbr class="spell">LFPR</abbr> among women aged <span class="nobr">25–54</span> and the decline in the <abbr class="spell">LFPR</abbr> among men in that age group over the last several decades. See, for example, Juhn and Potter (2006), Aaronson and others (2014), Council of Economic Advisors (2014), and Social Security Advisory Board (2015).</p>
|
|
<p> <a href="#mt3" id="mn3">3</a> A worker must accumulate 40 quarters of Social Security–covered employment to be fully insured for retired-worker benefits. (Earnings exceeding a given threshold qualify the worker for one quarter of coverage; up to four quarters can be earned in a given year. The earnings threshold is adjusted annually.) Retired-worker beneficiaries include those entitled solely to a retired-worker benefit and those who are dually entitled to a retired-worker benefit and a spouse's or <span class="nobr">widow(er)'s</span> benefit.</p>
|
|
<p> <a href="#mt4" id="mn4">4</a> For example, in 2014, retired-worker benefits were awarded to 1,432,653 men aged 62 or older. Of this number, 242,560 were conversions from disabled-worker benefits to retired-worker benefits at <abbr class="spell">FRA</abbr>. Of the 1,190,093 net new retired-worker benefit awards, 494,339 (41.5 percent) were awarded to men who were 62 years old at that time (<abbr class="spell">SSA</abbr> 2016, <a href="/policy/docs/statcomps/supplement/2015/6a.html#table6.a4">Table 6.A4</a>).</p>
|
|
<p> <a href="#mt5" id="mn5">5</a> Data on claims by age in the <i>Annual Statistical Supplement</i> are based on age in the month of the claim. Charts <span class="nobr">3–5</span> in this article follow the convention used by <abbr class="spell">OCACT</abbr> in preparing the annual <i>Trustees Reports</i> by using data based on age at the end of the calendar year.</p>
|
|
<p> <a href="#mt6" id="mn6">6</a> Disability Insurance benefits are automatically converted to retired-worker benefits when the beneficiary reaches his or her <abbr class="spell">FRA</abbr>. This does not change the amount of the benefit. It affects only the classification of benefit type.</p>
|
|
<p> <a href="#mt7" id="mn7">7</a> Until 2000, the earnings test applied to all beneficiaries younger than 70. In 2016, benefits for individuals younger than <abbr class="spell">FRA</abbr> are reduced by $1 for each $2 earned above $15,720. The withheld benefits are restored in the form of an increased benefit after the individual reaches <abbr class="spell">FRA</abbr>.</p>
|
|
<p> <a href="#mt8" id="mn8">8</a> Although <abbr class="spell">DI</abbr> benefits may be paid to dependents or survivors, this analysis is restricted to benefits paid to the disabled workers themselves.</p>
|
|
<p> <a href="#mt9" id="mn9">9</a> To be eligible for <abbr class="spell">DI</abbr> benefits, an individual must have earned one quarter of coverage for each calendar year after age 21 and have earned at least 20 quarters of coverage during the last 10 years. Fewer quarters of coverage are required for workers younger than 31. </p>
|
|
</div>
|
|
<div id="references">
|
|
<h2>References</h2>
|
|
<p>Aaronson, Stephanie, Tomaz Cajner, Bruce Fallick, Felix Galbis-Reig, Christopher Smith, and William Wascher. 2014. “Labor Force Participation: Recent Developments and Future Prospects.” <i>Brookings Papers on Economic Activity</i> (Fall): <span class="nobr">177–255.</span></p>
|
|
<p>[<abbr class="spell">BLS</abbr>] Bureau of Labor Statistics. <abbr>n.d.</abbr> “Geographic Profile of Employment and Unemployment: Frequently Asked Questions (<abbr class="spell">FAQ</abbr>s).” http://www.bls.gov/gps/gpsfaqs.htm#Ques2.</p>
|
|
<p>Census Bureau. 2014. “2014 National Population Projections.” https://www.census.gov/population/projections/data/national/2014.html.</p>
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<p>———. <abbr>n.d.</abbr> “About the Current Population Survey.” <a href="https://www.census.gov/programs-surveys/cps/about.html">http://www.census.gov/programs-surveys/cps/about.html</a>.</p>
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<p>Council of Economic Advisors. 2014. <i>The Labor Force Participation Rate Since 2007: Causes and Policy Implications.</i> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">CEA</abbr>.</p>
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<p>Juhn, Chinhui, and Simon Potter. 2006. “Changes in Labor Force Participation in the United States.” <i>Journal of Economic Perspectives</i> 20(3): <span class="nobr">27–46.</span></p>
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<p>Munnell, Alicia H., and Anqi Chen. 2015. “Trends in Social Security Claiming.” Issue in Brief <abbr title="Number">No.</abbr> <span class="nobr">15-8.</span> Chestnut Hill, <abbr title="Massachusetts">MA</abbr>: Center for Retirement Research at Boston College. <a href="https://crr.bc.edu/wp-content/uploads/2015/05/IB_15-8.pdf">http://crr.bc.edu/wp-content/uploads/2015/05/<abbr class="spell">IB</abbr>_15-8.pdf</a>.</p>
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<p>Pattison, David, and Hilary Waldron. 2013. “<a href="/policy/docs/ssb/v73n4/v73n4p25.html">Growth in New Disabled-Worker Entitlements, <span class="nobr">1970–2008.</span></a>” <i>Social Security Bulletin</i> 73(4): <span class="nobr">25–48.</span></p>
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<p>Social Security Administration. 2016. <i><a href="/policy/docs/statcomps/supplement/2015/index.html">Annual Statistical Supplement to the Social Security Bulletin, 2015</a>.</i> <abbr class="spell">SSA</abbr> Publication <abbr title="Number">No.</abbr> <span class="nobr">13-11700.</span> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">SSA</abbr>.</p>
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<p>Social Security Advisory Board. 2015. <i>2015 Technical Panel on Assumptions and Methods: Report to the Social Security Advisory Board.</i> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">SSAB</abbr>.</p>
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<p><abbr class="spell">SSA</abbr>. <i>See</i> Social Security Administration.</p>
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