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<h1 itemprop="headline">The Importance of Social Security Benefits to the Income of the Aged Population</h1>
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<div id="hByline">by <span itemprop="author">Irena Dushi, Howard M. Iams, and Brad Trenkamp</span><br>Social Security Bulletin, <abbr title="Volume">Vol.</abbr> 77 <abbr title="Number">No.</abbr> 2, 2017 (released May 2017)</div>
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<p id="synopsis" itemprop="description">Social Security benefits are the most important source of <abbr>U.S.</abbr> retirement income. Over time, however, trends in employer-provided pension offerings, societal changes, and Social Security program rule changes have altered the distribution of income by source among the aged population. Some researchers have argued that the Current Population Survey (<abbr class="spell">CPS</abbr>) does not properly measure income from retirement accounts and thus overstates reliance on Social Security income. To address such concerns, the Census Bureau revised income-related questions for the 2015 <abbr class="spell">CPS</abbr>. This note examines reliance on Social Security benefits among people aged 65 or older as measured by the 2015 <abbr class="spell">CPS</abbr> and two other major surveys. All three surveys report that roughly half of the aged population live in households that receive at least 50 percent of total family income from Social Security and about <span class="nobr">one-quarter</span> of the aged live in households that receive at least 90 percent of family income from Social Security.</p>
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<div class="eightypercent">
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<p>Irena Dushi is an economist with the Office of Policy Evaluation and Modeling, Office of Research, Evaluation, and Statistics (<abbr class="spell">ORES</abbr>), Office of Retirement and Disability Policy (<abbr class="spell">ORDP</abbr>), Social Security Administration (<abbr class="spell">SSA</abbr>). When this article was written, Howard Iams was a senior research adviser to <abbr class="spell">ORES</abbr>, <abbr class="spell">ORDP</abbr>, <abbr class="spell">SSA</abbr>. Brad Trenkamp is a policy analyst with <abbr class="spell">ORES</abbr>, <abbr class="spell">ORDP</abbr>, <abbr class="spell">SSA</abbr>.</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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<h2>Introduction</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">CPS</abbr></td>
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<td>Current Population Survey</td>
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</tr>
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<tr>
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<td><abbr class="spell">DC</abbr></td>
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<td>defined contribution</td>
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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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<td><abbr class="spell">HRS</abbr></td>
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<td>Health and Retirement Study</td>
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</tr>
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<td><abbr class="spell">IRA</abbr></td>
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<td>individual retirement account</td>
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<td><abbr>SIPP</abbr></td>
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<td>Survey of Income and Program Participation</td>
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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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</tbody>
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</table>
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</div>
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<p>The traditional major sources of retirement income in the United States—often called the three-legged stool or the three pillars—are Social Security benefits, employer-provided pensions (including retirement accounts), and income from assets or savings. Social Security is a social insurance program that provides an inflation-indexed lifetime annuity to aged beneficiaries. In addition to enjoying the protection provided by indexing, a prospective beneficiary who delays claiming Social Security benefits essentially purchases additional longevity insurance—reducing the risk of “running out of savings”—by raising his or her lifetime monthly benefit (Shu, Payne, and Sagara 2014; Shoven and Slavov 2012). Many observers regard Social Security benefits as the base of retirement income, particularly because benefits are a steady and reliable resource for almost all aged households (Brady, Burham, and Holden 2012; American Council of Life Insurers, American Benefits Council, and Investment Company Institute 2013; Poterba 2014). Because Social Security benefits represent a substantial portion of the income of Americans aged 65 or older (Social Security Administration [<abbr class="spell">SSA</abbr>] 2002, 2012, 2014, 2016a, 2016b), accurate measurements of that portion are important to researchers and policymakers (Banerjee 2013; Employee Benefit Research Institute 2013; Miller and Schieber 2013, 2014). Using data from the Current Population Survey (<abbr class="spell">CPS</abbr>), <abbr class="spell">SSA</abbr> estimates that in 2014, about 84 percent of people aged 65 or older received Social Security benefits; and among those in the bottom 40 percent of the income distribution, benefits accounted for an average of around 84 percent of total income (<abbr class="spell">SSA</abbr> 2016b).</p>
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<p>Some analysts have criticized the use of <abbr class="spell">CPS</abbr> data to underlie such estimates. Research has suggested that the <abbr class="spell">CPS</abbr> does not adequately measure income from certain sources—in particular, income from retirement accounts, such as individual retirement accounts (<abbr class="spell">IRA</abbr>s) or defined contribution (<abbr class="spell">DC</abbr>) plans (Miller and Schieber 2014). Specifically, researchers have argued that estimates based on <abbr class="spell">CPS</abbr> data were likely to overstate older Americans' reliance on Social Security benefits and to understate their reliance on income from retirement accounts, particularly among lower-income respondents. In response, the Census Bureau changed the income questions in the 2015 <abbr class="spell">CPS</abbr>, aiming to account more accurately for income drawn from retirement accounts. In addition, trends in recent decades in employer-provided pension offerings, societal changes, and Social Security program rule changes may have affected the relative importance of different income sources for older Americans, particularly that of Social Security. Thus, it is important for policymakers to have an accurate picture of the composition of retirement income so that any proposed changes to Social Security may better address the needs of the aged.</p>
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<p>This article assesses the extent to which Americans aged 65 or older rely on Social Security benefits. We use data from the 2015 <abbr class="spell">CPS</abbr>, which incorporates the revised income questions and may therefore provide more accurate results than were provided in previous survey years. We compare 2015 <abbr class="spell">CPS</abbr> results with those from the 2013 <abbr class="spell">CPS</abbr> to assess the effect of the survey revisions. We also attempt to validate the 2015 <abbr class="spell">CPS</abbr> results by comparing them with those from the 2008 panel of the Survey of Income and Program Participation (<abbr>SIPP</abbr>) and the 2012 wave of the Health and Retirement Study (<abbr class="spell">HRS</abbr>). Unlike <abbr class="spell">CPS</abbr> results on Social Security benefit income, which are based solely on the survey reports, data from the latter two surveys can be augmented with verifiably accurate information from Social Security administrative records, which contain data on Social Security benefits that respondents received in a given year. In addition, the latter two surveys provide (or allow us to calculate) information on income from retirement accounts.</p>
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<p>To examine the extent to which persons aged 65 or older rely on Social Security, we estimate the proportions of aged Americans for whom Social Security benefits account for (1) at least 50 percent and (2) at least 90 percent of their family income.<sup><a href="#mn1" id="mt1">1</a></sup> Interestingly, the estimates are quite similar, despite design differences across the three surveys. We find that about half of the population aged 65 or older live in households that receive at least 50 percent of their family income from Social Security benefits and about 25 percent of aged households rely on Social Security benefits for at least 90 percent of their family income.</p>
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<p>In the next three sections, we discuss findings from previous research, explore possible reasons for changes in recent decades in the relative importance of certain income sources for the aged, and describe the data and methods we use. In the final two sections, we present our findings and conclude with a discussion of policy implications.</p>
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<h2>Previous Research</h2>
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<p><abbr class="spell">SSA</abbr> has published statistics on the income of the aged population based on <abbr class="spell">CPS</abbr> data since the 1970s. From 1976 through 2006, about 90 percent of people aged 65 or older lived in households receiving income from Social Security.<sup><a href="#mn2" id="mt2">2</a></sup> Over that period, the average share of income from Social Security was always substantial (between 66 percent and 84 percent in any given year), particularly for households in the bottom half of the income distribution. Poterba (2014, Table 6), using data from the 2013 <abbr class="spell">CPS</abbr>, also finds wide variation across total-income quartiles in the distribution of income by source for individuals aged 65 or older.</p>
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<p>Using data from the redesigned March 2015 <abbr class="spell">CPS</abbr>, the Federal Interagency Forum on Aging-Related Statistics (2016, Table 9a) reports the percentage distribution of per capita 2014 family income by source, overall and in each total-income quintile for persons aged 65 or older.<sup><a href="#mn3" id="mt3">3</a></sup> Social Security benefits were the primary income source, accounting for an average of about 49 percent of total family income for aged individuals. Combined income from annuities and pensions (including distributions from retirement accounts) amounted to 16 percent of family income, and income from assets accounted for 6 percent. Beyond the three traditional pillars, earnings—now often considered a fourth pillar of retirement security—accounted for about 24 percent of family income, reflecting an increase in continued employment among the aged or the presence of younger workers in the family, or perhaps both. Public assistance and “other” sources respectively accounted for 2 percent and 3 percent of per capita family income of the aged population.</p>
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<p>The table also shows wide variation in income distribution by source across family-income quintiles. Social Security benefits in 2014 accounted for between 54 percent and 72 percent of family income in the three lowest income quintiles, compared with 18 percent to 34 percent of family income in the two highest quintiles. Furthermore, for aged individuals in the lowest two income quintiles, the share of family income received from private and public pensions was trivial (less than 8 percent), compared with around 25 percent for those in the highest two income quintiles. Similarly, the share of income from earnings was less than 14 percent among aged individuals in the lowest two income quintiles; but for those in the highest income quintile, it was much more important (40 percent). In addition, assets were a minor source of income for aged individuals in all income quintiles except the highest, for whose members they provided on average 13 percent of income. Together, those findings show that aged individuals in the lower income quintiles rely much more on Social Security benefits than their counterparts in the highest quintile do and that pensions, earnings, and assets are not very important income sources for aged persons with lower incomes.</p>
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<h2>Changes in Retirement Income by Source</h2>
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<p>The share of income from Social Security among persons aged 65 or older may have changed over time because of trends in pension offerings, societal changes, and program rule changes. We examine each factor in turn.</p>
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<h3>Pension Offerings</h3>
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<p>Employer-provided pensions are an important source of <abbr>U.S.</abbr> retirement income (Hardy and Shuey 2000; Herd 2009; O'Rand 2011; Poterba 2014; Shuey and O'Rand 2004; Warner, Hayward, and Hardy 2010). Over the last three decades, the dominant pension offering changed dramatically, from the defined benefit (<abbr class="spell">DB</abbr>) type to the <abbr class="spell">DC</abbr> type (Costo 2006; Mackenzie 2010; Wiatrowski 2012; Anguelov, Iams, and Purcell 2012). In <abbr class="spell">DB</abbr> plans, employees are enrolled automatically, and employers fund most or all of the pension plan. Employers also bear the capital-market and longevity risks related to providing income (in the form of an annuity) to retired workers. Because <abbr class="spell">DB</abbr> plans lack portability of pension accruals across jobs, they are risky for workers with high job turnover. <abbr class="spell">DC</abbr> plans are more attractive to those workers because <abbr class="spell">DC</abbr> accrued account balances are portable. However, <abbr class="spell">DC</abbr> plan participation is voluntary and employees bear all the investment risks.<sup><a href="#mn4" id="mt4">4</a></sup> In addition, their account balances—and consequently the income such accounts generate in retirement—depend not only on the amounts contributed over time, but also on whether those contributions were subject to earnings and employment shocks during the working years (Dushi and Iams 2015). As Johnson (2016, 63) observes of <abbr class="spell">DC</abbr> pensions: “These do-it-yourself retirement plans can generate substantial retirement income only if workers choose to make significant contributions to their accounts each pay period, resist the temptation to dip into their accounts before they retire, and manage funds wisely after they retire.”</p>
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<p>Predictably, the changing landscape of pension offerings led to a dramatic shift in aggregate asset holdings from traditional <abbr class="spell">DB</abbr> plans toward tax-advantaged <abbr class="spell">DC</abbr> plans or <abbr class="spell">IRA</abbr>s. In 1981, Americans held $673 billion in <abbr class="spell">DB</abbr> plan assets, $174 billion in <abbr class="spell">DC</abbr> plan assets, and $38 billion in <abbr class="spell">IRA</abbr>s. By 2014, traditional retirement plans held $8.0 trillion in assets, <abbr class="spell">DC</abbr> retirement plans held $6.3 trillion, and <abbr class="spell">IRA</abbr>s held $7.4 trillion (Federal Interagency Forum on Aging-Related Statistics 2016, Table 11c). Notably, most <abbr class="spell">IRA</abbr> assets reflect transfers from tax-advantaged <abbr class="spell">DC</abbr> retirement plans (Holden and Schrass 2016).</p>
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<p>Despite the growth in recent decades in aggregate retirement assets and holdings, estimates based on <abbr class="spell">CPS</abbr> data show that the percentage of income received from public and private pensions (including <abbr class="spell">IRA</abbr>s) among aged units (single persons aged 65 or older or couples with at least one member aged 65 or older) increased from 18 percent in 2000 to 21 percent in 2014. Over the same period, the share of their total income attributed to assets decreased from 18 percent to 10 percent (<abbr class="spell">SSA</abbr> 2002, Table 7.1; 2016b, Table 10.1); interest rate changes over that span may have contributed to the latter trend.</p>
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<p>Although the above-noted changes in income by source seem muted, the outlook for future retirees seems uncertain as studies continue to document low retirement savings among American workers (Munnell 2014; Ghilarducci 2014; Knoll, Tamborini, and Whitman 2012). Estimates based on the 2013 Survey of Consumer Finances, for example, indicate that 41 percent of American households headed by individuals aged <span class="nobr">55–64</span> have no savings in retirement accounts. Even more striking is the sharp variation by household income. Among households headed by individuals aged <span class="nobr">55–64,</span> the proportion with any retirement savings ranges from 9 percent in the lowest income quintile to 68 percent in the middle quintile and to 94 percent in the top income quintile. Among the 59 percent of households that have some retirement savings, the median amount saved is about $104,000, and <span class="nobr">one-quarter</span> of those households have saved less than $26,000 (Government Accountability Office 2015, Tables <span class="nobr">1–3).</span> Such savings may not provide an adequate annuity payment over the period of retirement. In sum, the shift in the dominant type of pension plan offerings and the resulting shift in the income they can generate is likely to have influenced not only the proportion of the retired population that draws pension income but also the composition and importance of such income in retirement.</p>
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<h3>Societal Changes</h3>
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<p>Increasing labor force participation among women and among older workers of either sex, particularly during the last decade, has led to an increase in earned income among people aged 65 or older. From 1999 to 2014, the labor-force participation rate of men aged <span class="nobr">65–69</span> increased from 29 percent to 36 percent; for men aged 70 or older, it increased from 12 percent to 16 percent. Over the same period, the labor-force participation rate of women aged <span class="nobr">65–69</span> increased from 18 percent to 28 percent, and for women aged 70 or older it rose from 6 percent to 9 percent (Federal Interagency Forum on Aging-Related Statistics 2016, Table 12). As a result, the percentage of family income derived from earnings among aged households increased from 23 percent in 2000 to 32 percent in 2014 (<abbr class="spell">SSA</abbr> 2002, Table 7.1; 2016b, Table 10.1).</p>
|
|
<p>Facing scarce employment opportunities during the Great Recession of <span class="nobr">2007–2009,</span> some older unemployed workers claimed early benefits (Haaga and Johnson 2012). As a result, their monthly Social Security benefit amounts were reduced relative to the benefits they would have received if they had claimed at full retirement age (<abbr class="spell">FRA</abbr>). Furthermore, the changing marital histories, educational attainment, and patterns of lifetime labor-force attachment of women have generally increased the retired-worker benefits to which they are entitled based on their own earnings while reducing their auxiliary (wife or survivor) benefits (Iams and Tamborini 2012; Butrica and Smith 2012; Iams 2016). These trends have reduced the Social Security benefits of many couples (Sass 2016).</p>
|
|
<h3>Programmatic Changes</h3>
|
|
<p>Social Security program changes, such as claiming-age rule changes, can strongly affect the level of Social Security benefits (Shoven and Slavov 2012). The 1983 Amendments to the Social Security Act stipulated that the <abbr class="spell">FRA</abbr> of 65 for individuals born before 1938 would be adjusted upward for those born in later years. The <abbr class="spell">FRA</abbr> increases by 2 months for members of each successive birth cohort from 1938 through 1942, reaching 66 for those born in 1943.<sup><a href="#mn5" id="mt5">5</a></sup> Because monthly benefits are permanently reduced for individuals claiming before reaching their <abbr class="spell">FRA</abbr>, the increased <abbr class="spell">FRA</abbr>s for members of later birth cohorts affect their Social Security income. For example, the monthly benefit of a person who claims at age 65 is reduced by 6.7 percent if her or his <abbr class="spell">FRA</abbr> is 66 (born <span class="nobr">1943–1954)</span> versus no reduction for a person whose <abbr class="spell">FRA</abbr> is 65 (born in 1937 or earlier). Likewise, a person whose <abbr class="spell">FRA</abbr> is 65 and who claims benefits at age 66 receives a delayed retirement credit of as much as 6.5 percent, versus no upward adjustment for someone whose <abbr class="spell">FRA</abbr> is 66.<sup><a href="#mn6" id="mt6">6</a></sup></p>
|
|
<p>The Senior Citizens' Freedom to Work Act of 2000 instituted another programmatic change by eliminating the retirement earnings test (<abbr class="spell">RET</abbr>) for working beneficiaries who had reached <abbr class="spell">FRA</abbr>. Prior to that law's enactment, benefits were reduced for working beneficiaries with earnings above given thresholds. After the <abbr class="spell">RET</abbr> elimination, retired-worker benefit claims spiked in 2000, particularly among workers who had reached <abbr class="spell">FRA</abbr>. In addition, increasing shares of claims were delayed in subsequent years among those workers who had not reached their increased <abbr class="spell">FRA</abbr> (Purcell 2016; Song and Manchester 2007).</p>
|
|
<p>In sum, the changes mentioned above led to a decrease in Social Security benefits as a percentage of total family income for aged households, from 38 percent in 2000 to 33 percent in 2014 (<abbr class="spell">SSA</abbr> 2002, Table 7.1; 2016b, Table 10.1).</p>
|
|
<h2>Data and Methods</h2>
|
|
<p>For this analysis, we use data from three nationally representative surveys: the 2015 <abbr class="spell">CPS</abbr>, sponsored jointly by the Census Bureau and the Bureau of Labor Statistics; wave 11 from the 2008 panel of the Census Bureau's <abbr>SIPP</abbr>; and the 2012 wave of the University of Michigan's <abbr class="spell">HRS</abbr>.<sup><a href="#mn7" id="mt7">7</a></sup> The <abbr class="spell">CPS</abbr> income questions refer to amounts received in the calendar year preceding the survey year; in the <abbr class="spell">HRS</abbr>, they refer to income received in the prior month, and respondents' answers are annualized for the survey year; in the <abbr>SIPP</abbr>, the questions refer to income in the survey months, and responses likewise are annualized. Hence, our variables measure income in 2014 for the <abbr class="spell">CPS</abbr> and in 2012 for the <abbr>SIPP</abbr> and the <abbr class="spell">HRS</abbr>. We use the 2012 data for the <abbr class="spell">HRS</abbr> and the <abbr>SIPP</abbr> (and not more recent data) because when this article was written, information on Social Security benefits from administrative records were not available beyond 2012.</p>
|
|
<p>Each survey provides information on socioeconomic characteristics (such as sex, marital status, race, Hispanic origin, education, income, and age group) and on income by source (such as Social Security, pensions, assets, earnings, and welfare programs). We estimate the proportion of income that comes from each source. In particular, we examine how reliance on Social Security benefits varies across socioeconomic subgroups.</p>
|
|
<p>The sample for this analysis consists of individuals aged 65 or older. For each individual, we define his or her total family or household income as the sum of all income from all members of the family or the household. Similarly, the total income from Social Security is the sum of benefits received by all family members. We then calculate the share of total family or household income received from Social Security and estimate the percentage of the aged population that relies on Social Security benefits as a primary source of income in retirement. We examine two thresholds of reliance on Social Security benefits. Specifically, we calculate the percentage of aged individuals who live in a household that derives (1) at least 50 percent and (2) at least 90 percent of family income from Social Security benefits.</p>
|
|
<h3>The <abbr class="spell">CPS</abbr></h3>
|
|
<p>We use data collected in the March 2015 <abbr class="spell">CPS</abbr> Annual Social and Economic Supplement. Respondents from a nationally representative sample of the <abbr>U.S.</abbr> population were asked detailed questions about income in the previous year for each person in the household, including whether they received any Social Security income, the amount of any such income, and the benefit type (retired worker, disabled worker, or dependent/survivor). Respondents were also asked if Medicare premiums were deducted from their Social Security benefits and, if so, how much. Based on responses to these questions, the Census Bureau calculated the Social Security income (which includes Medicare premiums) for each family member and then calculated the total family income. Because our sample is restricted to people aged 65 or older, Social Security income mostly comes from retired-worker, spouse, and survivor benefits.</p>
|
|
<p>Critics have claimed that the <abbr class="spell">CPS</abbr> inadequately measures asset income and distributions from tax-advantaged retirement accounts such as <span class="nobr">401(k)</span> plans or <abbr class="spell">IRA</abbr>s (Iams and Purcell 2013; Fisher 2008; Davies and Fisher 2009; Munnell and Chen 2014). Hence, previous research has argued that <abbr class="spell">CPS</abbr>-based estimates of the distribution of income of the aged population are likely to overstate reliance on Social Security benefits and understate reliance on retirement accounts (Miller and Schieber 2014). To address those criticisms, the Census Bureau redesigned the <abbr class="spell">CPS</abbr> for 2015 to improve the collection of data on sources of income received in the reference year (2014 in this case), particularly for the aged population. The redesign sought in part to reduce respondents' query fatigue by omitting questions for which the answer could be determined based on the response to an earlier question. Also, a “dual-pass” approach was implemented by asking first about the sources of income and then about the amount from each reported source. Additionally, the redesigned questionnaire revised the order in which the income questions appear, to better capture accurate information on the most likely sources of income among three types of respondent households: (1) those with a member aged 62 or older, (2) those with low income, and (3) all others. More importantly, for the first time, the 2015 <abbr class="spell">CPS</abbr> asked separate questions about retirement-account withdrawals and distributions and collected information on property income. The Census Bureau tested the redesign on a randomly selected subsample of ⅜ of the full 2014 <abbr class="spell">CPS</abbr> sample; the rest of the 2014 sample replied to the traditional questionnaire (Semega and Welniak 2015).</p>
|
|
<p>Among aged households, the estimated real median income among redesign respondents was 4.6 percent greater than that of traditional-questionnaire respondents. Furthermore, estimates based on the redesigned questionnaire of the prevalence and the aggregate value of retirement income from sources other than Social Security were about 50 percent and 22 percent higher, respectively, than estimates based on the traditional questionnaire. By contrast, the estimated prevalence and aggregate value of Social Security income were both only about 2 percent greater under the redesigned survey (Semega and Welniak 2015, Tables <span class="nobr">1–2).</span> Nevertheless, even in the redesigned-<abbr class="spell">CPS</abbr> sample, Social Security “remains the overwhelmingly predominant source of income for those ages 65 and older” and “over 60 percent of individuals in the two lowest-income quartiles received more than 90 percent of their total income from Social Security” (Copeland 2015, 11).</p>
|
|
<p>As noted earlier, the 2015 <abbr class="spell">CPS</abbr> data should provide a more accurate picture of the Social Security share of income for aged individuals. Comparing the 2015 <abbr class="spell">CPS</abbr> data with those from the other two surveys will provide a validity test of their accuracy.</p>
|
|
<h3>The <abbr>SIPP</abbr></h3>
|
|
<p>The 2008 <abbr>SIPP</abbr> panel started in late 2008 and continued through 2013, with a new wave of interviews conducted every 4 months. For this analysis, we use the monthly <abbr>SIPP</abbr> data collected in 2012. The survey data are routinely matched to Social Security administrative records; 93 percent of respondents in the 2008 <abbr>SIPP</abbr> panel were matched to their <abbr class="spell">SSA</abbr> records. </p>
|
|
<p><abbr>SIPP</abbr> respondents were asked detailed questions about the income sources and government program participation of each individual in the family. Starting with the 2015 <abbr class="spell">CPS</abbr>, the official Census Bureau definition of family income includes distributions from retirement accounts (which the Bureau calls lump sums). Therefore, in our definition of family income for the <abbr>SIPP</abbr> data, we include distributions from retirement accounts (as calculated by the Bureau for calendar year 2012). In addition, because <abbr>SIPP</abbr>-reported Social Security benefits do not include Medicare premiums (Iams and Purcell 2013), we replace the respondent's reported Social Security benefits with the total amount of Social Security benefits (calculated as the sum of the amounts of benefits paid by check or deposited to a bank account and the amount of Medicare premiums) using data from <abbr class="spell">SSA</abbr>'s Payment History Update System.<sup><a href="#mn8" id="mt8">8</a></sup></p>
|
|
<h3>The <abbr class="spell">HRS</abbr></h3>
|
|
<p>The <abbr class="spell">HRS</abbr> is the most comprehensive national longitudinal survey of Americans aged 51 or older. It began in 1992 and follow-up interviews have been conducted every other year since then. The purpose of the <abbr class="spell">HRS</abbr> is to provide high-quality data to examine “the ways in which older adults' health interacts with social, economic, and psychological factors and retirement decisions.” By conducting “unique and in-depth interviews,” it also provides a comprehensive inventory of the income and wealth of the population aged 51 or older (National Institute on Aging 2007).</p>
|
|
<p>The <abbr class="spell">HRS</abbr> is more systematic than the <abbr class="spell">CPS</abbr> and the <abbr>SIPP</abbr> in collecting information on retirement-plan account balances and distributions. If income or wealth information is missing, <abbr class="spell">HRS</abbr> respondents are asked follow-up questions about the dollar amount using an “unfolding brackets” approach to identify the range limits of the missing data item.</p>
|
|
<p>Czajka and Denmead (2008) find that <abbr class="spell">HRS</abbr>-reported household incomes in 2002 for persons aged 51 or older were substantially higher (by <span class="nobr">20–30</span> percent) than those reported in the <abbr class="spell">CPS</abbr> and the <abbr>SIPP</abbr>. The characteristics of this aged population were largely similar across the three surveys, although <abbr class="spell">HRS</abbr> respondents were slightly more likely to live with others and less likely to live alone than were their <abbr class="spell">CPS</abbr> and <abbr>SIPP</abbr> counterparts. The authors conclude that “<abbr class="spell">HRS</abbr> incomes are higher than those of the Census Bureau surveys, but resolving whether this is due to better measurement or over-representation of higher-income families must be left to future research.”</p>
|
|
<p>In this article, we use household income information obtained from the <abbr>RAND</abbr> Corporation's user-friendly <abbr class="spell">HRS</abbr> data file (version O). Specifically, we focus on variables that correspond to the 2012 wave. The <abbr class="spell">HRS</abbr> household-income measure includes earnings, private pensions, Social Security benefits, and income from welfare programs, capital, and other sources. For married respondents, total household income combines that of both spouses.</p>
|
|
<p>The <abbr class="spell">HRS</abbr> understates total Social Security benefit amounts because it asks respondents to report the net amount. Specifically, in 2012, question <abbr class="spell">NQ</abbr>085 asked: “About the Social Security income that you (yourself) receive, how much was the Social Security check or the amount deposited directly into your account last month? We want the amount after any deductions.” Note that the amount paid to the respondent as a check or direct deposit does not include the amount of Medicare premiums withheld from the total benefit. Given the wording of this question, it is plausible that respondents report only the amount paid to them rather than the total or gross benefits.</p>
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|
<p>The true Social Security benefit amount (either gross or net) can be determined from Social Security administrative records. For about half of the respondents in the 2012 wave of the <abbr class="spell">HRS</abbr>, we have matched records containing information on their earnings and Social Security benefit. For those respondents, we update their self-reported benefit amount with administrative information (that is, the sum of benefits paid and of the Medicare premiums).<sup><a href="#mn9" id="mt9">9</a></sup> We use data for 2012 because we do not have matched administrative data beyond 2012. For respondents without matched records we add to their survey-reported benefits an amount of $1,200, which is the average (and the median) Medicare premium observed in the Payment History Update System records. Thus, for couples, the amount of Social Security benefits is the sum of the corrected Social Security benefits received by both spouses. Then, we correct the total household income variable in the <abbr>RAND</abbr> <abbr class="spell">HRS</abbr> data file with this adjusted measure of Social Security benefits.</p>
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|
<p>Although the <abbr class="spell">HRS</abbr> household-income measure does not include withdrawals or distributions from <abbr class="spell">IRA</abbr>s or <span class="nobr">401(k)</span>-type accounts, respondents report those account balances in either the survey's wealth module or its employment module. We use respondents' self-reported balances to calculate the stream of annual income one can withdraw from such tax-advantaged retirement accounts. Because people aged 70½ or older are legally required to take annual minimum distributions from their account balances, we assume that they have received such distributions even if they are not reported as income. To estimate the distribution amount, we use the Internal Revenue Service (<abbr class="spell">IRS</abbr>) required minimum distribution factor, which is based on life expectancy at a given age. Research has shown that few people draw distributions from <abbr class="spell">IRA</abbr>s (Holden and Schrass 2016) or from <span class="nobr">401(k)</span>-type accounts (Poterba, Venti, and Wise 2011a, 2011b) before they are required to do so. Nevertheless, to measure retirement-account income consistently, we extrapolate the distribution factors for persons aged <span class="nobr">65–69</span> from <abbr class="spell">IRS</abbr> data for persons aged 70½ or older. Then, we add the estimated amount of annual withdrawals to total household income and use the corrected measure to estimate the reliance on Social Security benefits. </p>
|
|
<h2>Results</h2>
|
|
<p>To examine the effects of the <abbr class="spell">CPS</abbr> redesign, we start by comparing estimates from the 2013 <abbr class="spell">CPS</abbr> (covering income in 2012) with those from the 2015 <abbr class="spell">CPS</abbr> (covering income in 2014). For both years, Table 1 presents the estimated proportion of respondents aged 65 or older for whom Social Security provided at least 50 percent or at least 90 percent of their family income. In 2014, about half (52 percent) of aged persons lived in families that derived at least half of their total income from Social Security benefits. As expected, that figure is lower than the estimated percentage for 2012 (56 percent), most likely because the redesigned <abbr class="spell">CPS</abbr> better measured income from other sources. About <span class="nobr">one-quarter</span> of the aged population lived in families that received 90 percent or more of their family income from Social Security benefits, and the estimated percentage for 2012 (27 percent) was only slightly higher than that for 2014 (25 percent). Although the redesigned <abbr class="spell">CPS</abbr> income questions resulted in slightly lower estimates of reliance on Social Security benefits, the overall pattern did not change much.</p>
|
|
<div class="table" id="table1">
|
|
<table>
|
|
<caption><span class="tableNumber">Table 1. </span>Percentages of the population aged 65 or older for whom Social Security benefits accounted for at least 50 percent and at least 90 percent of family income: By selected characteristics, 2012 and 2014</caption>
|
|
<colgroup span="1" style="width:17em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<thead>
|
|
<tr>
|
|
<th rowspan="2" class="stubHeading" scope="colgroup">Characteristic</th>
|
|
<th colspan="2" class="spanner" scope="colgroup">2013 <abbr class="spell">CPS</abbr> (2012)</th>
|
|
<th colspan="2" class="spanner" scope="colgroup">2015 <abbr class="spell">CPS</abbr> (2014)</th>
|
|
</tr>
|
|
<tr>
|
|
<th scope="col">≥50%</th>
|
|
<th scope="col">≥90%</th>
|
|
<th scope="col">≥50%</th>
|
|
<th scope="col">≥90%</th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr>
|
|
<th class="stub3" scope="rowgroup">Total</th>
|
|
<td>55.9</td>
|
|
<td>26.7</td>
|
|
<td>51.8</td>
|
|
<td>24.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Sex</th>
|
|
<td colspan="4"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Women</th>
|
|
<td>58.9</td>
|
|
<td>29.6</td>
|
|
<td>55.2</td>
|
|
<td>27.4</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Men</th>
|
|
<td>52.1</td>
|
|
<td>23.0</td>
|
|
<td>47.5</td>
|
|
<td>21.3</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Marital status</th>
|
|
<td colspan="4"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Married</th>
|
|
<td>51.3</td>
|
|
<td>20.0</td>
|
|
<td>45.9</td>
|
|
<td>18.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Not married</th>
|
|
<td>62.0</td>
|
|
<td>35.6</td>
|
|
<td>59.6</td>
|
|
<td>32.6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Race/ethnicity</th>
|
|
<td colspan="4"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">White (non-Hispanic)</th>
|
|
<td>56.1</td>
|
|
<td>26.5</td>
|
|
<td>51.8</td>
|
|
<td>24.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Black (non-Hispanic)</th>
|
|
<td>59.3</td>
|
|
<td>33.8</td>
|
|
<td>56.9</td>
|
|
<td>32.5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Other (non-Hispanic)</th>
|
|
<td>46.5</td>
|
|
<td>23.3</td>
|
|
<td>43.7</td>
|
|
<td>22.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Hispanic origin (any race)</th>
|
|
<td>56.2</td>
|
|
<td>34.9</td>
|
|
<td>51.5</td>
|
|
<td>31.2</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Educational attainment</th>
|
|
<td colspan="4"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Less than high school graduate</th>
|
|
<td>69.4</td>
|
|
<td>39.0</td>
|
|
<td>68.3</td>
|
|
<td>41.4</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">High school graduate</th>
|
|
<td>62.6</td>
|
|
<td>30.8</td>
|
|
<td>57.9</td>
|
|
<td>27.6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Some college, no degree</th>
|
|
<td>54.5</td>
|
|
<td>23.4</td>
|
|
<td>50.0</td>
|
|
<td>21.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">College graduate or higher</th>
|
|
<td>37.3</td>
|
|
<td>14.9</td>
|
|
<td>34.9</td>
|
|
<td>14.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Income quintile</th>
|
|
<td colspan="4"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">First (lowest)</th>
|
|
<td>87.5</td>
|
|
<td>65.4</td>
|
|
<td>86.6</td>
|
|
<td>64.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Second</th>
|
|
<td>84.5</td>
|
|
<td>49.1</td>
|
|
<td>82.3</td>
|
|
<td>47.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Third</th>
|
|
<td>69.7</td>
|
|
<td>19.2</td>
|
|
<td>62.7</td>
|
|
<td>13.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Fourth</th>
|
|
<td>32.2</td>
|
|
<td>1.5</td>
|
|
<td>24.8</td>
|
|
<td>1.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Fifth (highest)</th>
|
|
<td>3.9</td>
|
|
<td>0.0</td>
|
|
<td>2.2</td>
|
|
<td>0.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Age</th>
|
|
<td colspan="4"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">65 or older</th>
|
|
<td>55.9</td>
|
|
<td>26.7</td>
|
|
<td>51.8</td>
|
|
<td>24.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row"><span class="nobr">65–69</span></th>
|
|
<td>43.6</td>
|
|
<td>17.9</td>
|
|
<td>41.7</td>
|
|
<td>18.3</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row"><span class="nobr">70–74</span></th>
|
|
<td>55.7</td>
|
|
<td>25.7</td>
|
|
<td>51.1</td>
|
|
<td>23.3</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row"><span class="nobr">75–79</span></th>
|
|
<td>61.8</td>
|
|
<td>30.3</td>
|
|
<td>57.0</td>
|
|
<td>26.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row">80 or older</th>
|
|
<td>66.2</td>
|
|
<td>35.4</td>
|
|
<td>61.4</td>
|
|
<td>32.7</td>
|
|
</tr>
|
|
<tr class="shaded">
|
|
<th class="stub0" scope="rowgroup">Sample size</th>
|
|
<td class="center" colspan="2">20,162</td>
|
|
<td class="center" colspan="2">20,912</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="firstNote" colspan="5">SOURCE: Authors' calculations based on 2013 and 2015 <abbr class="spell">CPS</abbr>.</td>
|
|
</tr>
|
|
<tr>
|
|
<td class="lastNote" colspan="5">NOTES: Reported estimates are weighted using survey weights.
|
|
<div class="newNote">Samples consist of persons aged 65 or older; sample sizes are unweighted.</div>
|
|
<div class="newNote">Family income is defined according to Census Bureau definitions of family and income (see <a href="https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar15.pdf">https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar15.pdf</a>).</div>
|
|
</td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<p>Reliance on income from Social Security varies greatly by socioeconomic characteristics. Women relied on Social Security benefits more than men did. In 2014, 55 percent of women and 48 percent of men lived in families receiving at least half of their income from Social Security benefits, and the corresponding estimates for the 90 percent threshold are 27 percent and 21 percent. Similarly, nonmarried respondents in 2014 relied on Social Security substantially more than married respondents did: 60 percent versus 46 percent, respectively, at the 50 percent threshold and 33 percent versus 19 percent at the 90 percent threshold. Across race/ethnicity groups, non-Hispanic blacks were more likely to receive at least half of their income (57 percent) and at least 90 percent of their income (33 percent) from Social Security in 2014 than were respondents in other groups. Reliance on Social Security income decreases with higher education levels. Around <span class="nobr">two-thirds</span> of aged respondents with less than a high school degree or with a high school degree relied on Social Security benefits for at least half of their income in 2014, compared with about <span class="nobr">one-third</span> of college graduates. Furthermore, a substantial proportion (41 percent) of those who did not complete high school relied on Social Security benefits for at least 90 percent of their family income, compared with 14 percent of college graduates.</p>
|
|
<p>Expectedly, reliance on Social Security benefits decreases as family income increases. Differences across the income distribution are substantial: Respondents in the lowest and second-lowest income quintiles in 2014 were much more likely (87 percent and 82 percent, respectively) to receive at least half of their family income from Social Security than were those in the highest income quintile (2 percent). The corresponding estimates for those at the 90 percent threshold of reliance were 64 percent for those in the lowest income quintile and 0 percent for those in the highest income quintile. Finally, reliance on Social Security income increases with age, suggesting that as people get older they may have depleted other income sources, without which Social Security becomes even more important. In 2014, the proportions of persons receiving at least half of their income from Social Security were 42 percent at ages <span class="nobr">65–69,</span> 51 percent at ages <span class="nobr">70–74,</span> 57 percent at ages <span class="nobr">75–79,</span> and 61 percent at ages 80 or older. The respective proportions receiving at least 90 percent of income from Social Security were 18 percent, 23 percent, 27 percent, and 33 percent. For every socioeconomic subgroup except one, the percentages in 2014 were lower than in 2012.</p>
|
|
<p>Table 2 compares estimates of reliance on Social Security benefits based on data from the March 2015 <abbr class="spell">CPS</abbr> (covering income in 2014) with estimates based on data from the 2012 <abbr class="spell">HRS</abbr> and the 2008 panel of the <abbr>SIPP</abbr> (each covering income in 2012). Despite differences in reference years and methodologies, the three surveys produce very similar estimated percentages of aged persons who live in households that receive at least half of their income from Social Security (around 54 percent in the <abbr class="spell">HRS</abbr> and the <abbr>SIPP</abbr> and 52 percent in the <abbr class="spell">CPS</abbr>). Estimates of reliance at the 90 percent threshold, however, are more divergent: about <span class="nobr">one-quarter</span> of the aged population in the <abbr class="spell">HRS</abbr> and the <abbr class="spell">CPS</abbr>, and about <span class="nobr">one-fifth</span> in the <abbr>SIPP</abbr>. It is unclear why the <abbr>SIPP</abbr> estimate is lower than those from the other two surveys. Perhaps, because the <abbr>SIPP</abbr> was designed to focus on income and program participation of the low-income population, it may better reflect the composition of their income. In any event, the patterns of reliance across socioeconomic subgroups are generally consistent across the surveys. Notably, even though we correct for retirement-account withdrawals and distributions, the proportion of aged persons who rely on Social Security for at least half of their family income is for many subgroups higher in the <abbr class="spell">HRS</abbr> than it is in the other two surveys. In particular, <abbr class="spell">HRS</abbr> estimates of reliance are higher for women, the nonmarried, all race/ethnicity groups other than non-Hispanic whites, persons with no postsecondary education, all income quintiles except the lowest, and the <span class="nobr">70–74</span> and <span class="nobr">75–79</span> age groups. These findings suggest that Social Security remains the primary source of retirement income for substantial segments of the aged population and that retirement accounts, despite their increased prevalence, have not changed the importance of Social Security benefits for the majority of the aged population.</p>
|
|
<div class="table" id="table2">
|
|
<table>
|
|
<caption><span class="tableNumber">Table 2. </span>Percentages of the population aged 65 or older for whom Social Security benefits accounted for at least 50 percent and at least 90 percent of family income according to three alternative surveys: By selected characteristics, 2012 or 2014</caption>
|
|
<colgroup span="1" style="width:17em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<colgroup span="2" style="width:6em"></colgroup>
|
|
<thead>
|
|
<tr>
|
|
<th rowspan="2" class="stubHeading" scope="colgroup">Characteristic</th>
|
|
<th colspan="2" class="spanner" scope="colgroup"><abbr class="spell">HRS</abbr> (2012)</th>
|
|
<th colspan="2" class="spanner" scope="colgroup"><abbr>SIPP</abbr> (2012)</th>
|
|
<th colspan="2" class="spanner" scope="colgroup"><abbr class="spell">CPS</abbr> (2014)</th>
|
|
</tr>
|
|
<tr>
|
|
<th scope="col">≥50%</th>
|
|
<th scope="col">≥90%</th>
|
|
<th scope="col">≥50%</th>
|
|
<th scope="col">≥90%</th>
|
|
<th scope="col">≥50%</th>
|
|
<th scope="col">≥90%</th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr>
|
|
<th class="stub3" scope="rowgroup">Total</th>
|
|
<td>53.5</td>
|
|
<td>22.4</td>
|
|
<td>53.7</td>
|
|
<td>19.6</td>
|
|
<td>51.8</td>
|
|
<td>24.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Sex</th>
|
|
<td colspan="6"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Women</th>
|
|
<td>56.9</td>
|
|
<td>25.4</td>
|
|
<td>56.8</td>
|
|
<td>21.8</td>
|
|
<td>55.2</td>
|
|
<td>27.4</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Men</th>
|
|
<td>49.2</td>
|
|
<td>18.5</td>
|
|
<td>49.6</td>
|
|
<td>16.8</td>
|
|
<td>47.5</td>
|
|
<td>21.3</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Marital status</th>
|
|
<td colspan="6"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Married</th>
|
|
<td>46.3</td>
|
|
<td>15.7</td>
|
|
<td>48.2</td>
|
|
<td>13.7</td>
|
|
<td>45.9</td>
|
|
<td>18.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Not married</th>
|
|
<td>63.9</td>
|
|
<td>32.1</td>
|
|
<td>60.9</td>
|
|
<td>27.4</td>
|
|
<td>59.6</td>
|
|
<td>32.6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Race/ethnicity</th>
|
|
<td colspan="6"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">White (non-Hispanic)</th>
|
|
<td>51.1</td>
|
|
<td>19.3</td>
|
|
<td>55.0</td>
|
|
<td>19.8</td>
|
|
<td>51.8</td>
|
|
<td>24.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Black (non-Hispanic)</th>
|
|
<td>63.7</td>
|
|
<td>36.4</td>
|
|
<td>52.7</td>
|
|
<td>19.1</td>
|
|
<td>56.9</td>
|
|
<td>32.5</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Other (non-Hispanic)</th>
|
|
<td>52.5</td>
|
|
<td>24.7</td>
|
|
<td>46.9</td>
|
|
<td>18.6</td>
|
|
<td>43.7</td>
|
|
<td>22.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Hispanic origin (any race)</th>
|
|
<td>67.7</td>
|
|
<td>39.5</td>
|
|
<td>44.6</td>
|
|
<td>18.3</td>
|
|
<td>51.5</td>
|
|
<td>31.2</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Educational attainment</th>
|
|
<td colspan="6"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Less than high school graduate</th>
|
|
<td>70.3</td>
|
|
<td>38.5</td>
|
|
<td>62.8</td>
|
|
<td>27.7</td>
|
|
<td>68.3</td>
|
|
<td>41.4</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">High school graduate</th>
|
|
<td>61.1</td>
|
|
<td>25.3</td>
|
|
<td>60.8</td>
|
|
<td>22.5</td>
|
|
<td>57.9</td>
|
|
<td>27.6</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Some college, no degree</th>
|
|
<td>51.2</td>
|
|
<td>19.3</td>
|
|
<td>54.1</td>
|
|
<td>18.0</td>
|
|
<td>50.0</td>
|
|
<td>21.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">College graduate or higher</th>
|
|
<td>30.6</td>
|
|
<td>8.2</td>
|
|
<td>34.9</td>
|
|
<td>10.6</td>
|
|
<td>34.9</td>
|
|
<td>14.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Income quintile</th>
|
|
<td colspan="6"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">First (lowest)</th>
|
|
<td>84.1</td>
|
|
<td>57.5</td>
|
|
<td>91.5</td>
|
|
<td>61.9</td>
|
|
<td>86.6</td>
|
|
<td>64.1</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Second</th>
|
|
<td>83.5</td>
|
|
<td>36.4</td>
|
|
<td>81.8</td>
|
|
<td>29.2</td>
|
|
<td>82.3</td>
|
|
<td>47.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Third</th>
|
|
<td>70.8</td>
|
|
<td>21.6</td>
|
|
<td>62.6</td>
|
|
<td>6.6</td>
|
|
<td>62.7</td>
|
|
<td>13.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Fourth</th>
|
|
<td>40.3</td>
|
|
<td>5.2</td>
|
|
<td>28.3</td>
|
|
<td>0.1</td>
|
|
<td>24.8</td>
|
|
<td>1.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">Fifth (highest)</th>
|
|
<td>3.8</td>
|
|
<td>0.2</td>
|
|
<td>1.8</td>
|
|
<td>0.0</td>
|
|
<td>2.2</td>
|
|
<td>0.0</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub0" scope="rowgroup">Age</th>
|
|
<td colspan="6"></td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub1" scope="row">65 or older</th>
|
|
<td>52.8</td>
|
|
<td>22.1</td>
|
|
<td>53.7</td>
|
|
<td>19.6</td>
|
|
<td>51.8</td>
|
|
<td>24.7</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row"><span class="nobr">65–69</span></th>
|
|
<td>39.8</td>
|
|
<td>15.4</td>
|
|
<td>41.2</td>
|
|
<td>14.4</td>
|
|
<td>41.7</td>
|
|
<td>18.3</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row"><span class="nobr">70–74</span></th>
|
|
<td>56.0</td>
|
|
<td>24.2</td>
|
|
<td>53.6</td>
|
|
<td>17.8</td>
|
|
<td>51.1</td>
|
|
<td>23.3</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row"><span class="nobr">75–79</span></th>
|
|
<td>60.6</td>
|
|
<td>25.6</td>
|
|
<td>58.6</td>
|
|
<td>22.1</td>
|
|
<td>57.0</td>
|
|
<td>26.8</td>
|
|
</tr>
|
|
<tr>
|
|
<th class="stub2" scope="row">80 or older</th>
|
|
<td>62.4</td>
|
|
<td>26.7</td>
|
|
<td>64.3</td>
|
|
<td>25.5</td>
|
|
<td>61.4</td>
|
|
<td>32.7</td>
|
|
</tr>
|
|
<tr class="shaded">
|
|
<th class="stub0" scope="rowgroup">Sample size</th>
|
|
<td class="center" colspan="2">10,713</td>
|
|
<td class="center" colspan="2">10,416</td>
|
|
<td class="center" colspan="2">20,912</td>
|
|
</tr>
|
|
</tbody>
|
|
<tfoot>
|
|
<tr>
|
|
<td class="firstNote" colspan="7">SOURCE: Authors' calculations based on <abbr class="spell">HRS</abbr> (2012 Wave), <abbr>SIPP</abbr> (2008 Panel), and 2015 <abbr class="spell">CPS</abbr>.</td>
|
|
</tr>
|
|
<tr>
|
|
<td class="lastNote" colspan="7">NOTES: Reported estimates are weighted using survey weights.
|
|
<div class="newNote">Samples consist of persons aged 65 or older; sample sizes are unweighted.</div>
|
|
<div class="newNote">Family income is defined according to Census Bureau definitions of family and income (see <a href="https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar15.pdf">https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar15.pdf</a>).</div>
|
|
</td>
|
|
</tr>
|
|
</tfoot>
|
|
</table>
|
|
</div>
|
|
<h2>Summary and Conclusion</h2>
|
|
<p>Analysis of three independent surveys—the <abbr class="spell">HRS</abbr>, the <abbr>SIPP</abbr>, and the <abbr class="spell">CPS</abbr>—reveals that despite their different samples, designs, and approaches to measuring income by source, they yield similar results regarding the importance of Social Security benefits to the income of the aged. They confirm the findings of previous research that Social Security benefits provide the majority of retirement income to persons aged 65 or older. Estimates based on data from the three surveys reveal that about half of the aged population live in households receiving at least 50 percent of their family income from Social Security benefits and about <span class="nobr">one-quarter</span> live in households receiving at least 90 percent of their family income from Social Security.</p>
|
|
<p>In the <abbr class="spell">CPS</abbr>, the estimated proportion of persons aged 65 or older who relied on Social Security benefits for at least half of their family income was lower in 2014 (52 percent) than in 2012 (56 percent). Similarly, the estimated proportion receiving 90 percent or more of their family income from Social Security benefits was slightly lower in 2014 (25 percent) than in 2012 (27 percent). These seeming decreases likely reflect better measurement of asset and retirement-account income in the redesigned 2015 <abbr class="spell">CPS</abbr>, leading to apparent increases in estimated income for 2014 from those sources, although the increases are not substantial enough to affect the reliance on Social Security. Nevertheless, the results of even the redesigned <abbr class="spell">CPS</abbr> indicate that persons aged 65 or older rely heavily on Social Security benefit income.</p>
|
|
<div id="notes">
|
|
<h2>Notes</h2>
|
|
<p> <a href="#mt1" id="mn1">1</a> We use “family” and “household” interchangeably in this article because the <abbr>SIPP</abbr> uses family-level income variables and the <abbr class="spell">HRS</abbr> uses household-level income variables. The <abbr class="spell">CPS</abbr> calculates family income by summing self-reported income amounts across all family members.</p>
|
|
<p> <a href="#mt2" id="mn2">2</a> After 2006, the proportion dropped gradually, and by 2014, it had reached 84 percent.</p>
|
|
<p> <a href="#mt3" id="mn3">3</a> March 2015 <abbr class="spell">CPS</abbr> questions covered income received in 2014.</p>
|
|
<p> <a href="#mt4" id="mn4">4</a> Under the Pension Protection Act of 2006, employers can automatically enroll employees in a <abbr class="spell">DC</abbr> plan at a default contribution rate. Employees can, however, opt out of the plan or change their contribution rate.</p>
|
|
<p> <a href="#mt5" id="mn5">5</a> The <abbr class="spell">FRA</abbr> is 66 for individuals born during <span class="nobr">1943–1954.</span> It increases in <span class="nobr">2-month</span> increments for members of each successive birth cohort from 1955 through 1959 and is 67 for those born in 1960 or later.</p>
|
|
<p> <a href="#mt6" id="mn6">6</a> Delayed retirement credits vary according to <abbr class="spell">FRA</abbr> and calendar year of claiming. For example, the delayed retirement credit is 8 percent per year for individuals born in 1943 or later. For more information, see the <i>Social Security Handbook,</i> Section 720: Delayed Retirement Credit (<a href="/OP_Home/handbook/handbook.07/handbook-0720.html">https://www.socialsecurity.gov/OP_Home/handbook/handbook.07/handbook-0720.html</a>).</p>
|
|
<p> <a href="#mt7" id="mn7">7</a> We also use 2013 <abbr class="spell">CPS</abbr> data, but only to assess the impact of changes to the 2015 <abbr class="spell">CPS</abbr> income questions.</p>
|
|
<p> <a href="#mt8" id="mn8">8</a> Iams and Purcell (2013) established that the Social Security incomes reported in the 2010 <abbr class="spell">CPS</abbr> closely correspond to the amounts in the Social Security administrative records. By contrast, they find that estimates based on the 2009 <abbr>SIPP</abbr> data understated Social Security benefits by about $1,000 per person on average.</p>
|
|
<p> <a href="#mt9" id="mn9">9</a> We compared the <abbr class="spell">HRS</abbr> respondents' self-reported Social Security benefits and information from the administrative records in 2012 and found that the difference at the mean was about $255 when compared to net benefits and about $1,270 when compared to gross benefits. The latter amount is approximately similar to the difference that Iams and Purcell (2013) found using <abbr>SIPP</abbr> data and is almost equal to the median Medicare premiums.</p>
|
|
</div>
|
|
<div id="references">
|
|
<h2>References</h2>
|
|
<p>American Council of Life Insurers, American Benefits Council, and Investment Company Institute. 2013. <i>Our Strong Retirement System: An American Success Story.</i> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">ACLI</abbr>, <abbr class="spell">ABC</abbr>, <abbr class="spell">ICI</abbr>. <a href="http://www.americanbenefitscouncil.org/pub/e6151284-b60a-56e1-999d-cc34b24375df">http://www.americanbenefitscouncil.org/pub/e6151284-b60a-56e1-999d-cc34b24375df</a>.</p>
|
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<p>Banerjee, Sudipto. 2013. “How Does Household Income Change in the Ten Years Around Age 65?” <i><abbr>EBRI</abbr> Notes</i> 34(9): <span class="nobr">9–15.</span> https://www.ebri.org/pdf/notespdf/<abbr class="spell">EBRI</abbr>_Notes_09_Sept-13_<abbr class="spell">WBS</abbr>-RepRts2.pdf.</p>
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<p>Brady, Peter, Kimberly Burham, and Sarah Holden. 2012. <i>The Success of the <abbr>U.S.</abbr> Retirement System.</i> Washington, <abbr class="spell">DC</abbr>: Investment Company Institute.</p>
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<p>Butrica, Barbara A., and Karen E. Smith. 2012. “<a href="/policy/docs/ssb/v72n1/v72n1p1.html">The Impact of Changes in Couples' Earnings on Married Women's Social Security Benefits</a>.” <i>Social Security Bulletin</i> 72(1): <span class="nobr">1–9.</span></p>
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<p>Copeland, Craig. 2015. “Examining the New Income Measures in the Current Population Survey.” <i><abbr>EBRI</abbr> Notes</i> 36(5): <span class="nobr">8–15.</span> https://www.ebri.org/pdf/notespdf/<abbr class="spell">EBRI</abbr>_Notes_05_May15_<abbr class="spell">CDHP</abbr>s-<abbr class="spell">CPS</abbr>.pdf.</p>
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<p>Costo, Stephanie L. 2006. “Trends in Retirement Plan Coverage Over the Last Decade.” <i>Monthly Labor Review</i> 129(2): <span class="nobr">59–64.</span></p>
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<p>Czajka, John L., and Gabrielle Denmead. 2008. <i>Income Data for Policy Analysis: A Comparative Assessment of Eight Surveys. Final Report.</i> Washington, <abbr class="spell">DC</abbr>: Mathematica Policy Research.</p>
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<p>Davies, Paul, and T. Lynn Fisher. 2009. “<a href="/policy/docs/ssb/v69n2/v69n2p1.html">Measurement Issues Associated with Using Survey Data Matched with Administrative Data from the Social Security Administration</a>.” <i>Social Security Bulletin</i> 69(2): <span class="nobr">1–12.</span></p>
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<p>Dushi, Irena, and Howard M. Iams. 2015. “The Impact of Employment and Earnings Shocks on Contribution Behavior in Defined Contribution Plans: <span class="nobr">2005–2009.</span>” <i>The Journal of Retirement</i> 2(4): <span class="nobr">86–104.</span></p>
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<p>Employee Benefit Research Institute. 2013. “The <span class="nobr">Post-65</span> Shift in Household Income Sources.” <abbr>EBRI</abbr> Fast Facts <abbr title="Number">No.</abbr> 250. Washington, <abbr class="spell">DC</abbr>: <abbr>EBRI</abbr>. https://www.ebri.org/pdf/FF.250.IncShft.10Oct13.pdf.</p>
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<p>Federal Interagency Forum on Aging-Related Statistics. 2016. <i>Older Americans 2016: Key Indicators of Well-Being.</i> Washington, <abbr class="spell">DC</abbr>: Government Printing Office. <a href="https://agingstats.gov">https://agingstats.gov</a>.</p>
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<p>Fisher, T. Lynn. 2008. “<a href="/policy/docs/ssb/v67n2/v67n2p55.html">The Impact of Survey Choice on Measuring the Relative Importance of Social Security Benefits to the Elderly</a>.” <i>Social Security Bulletin</i> 67(2): <span class="nobr">55–64.</span></p>
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<p>Ghilarducci, Teresa. 2014. “Private Pensions.” In <i>Oxford Handbook of <abbr>U.S.</abbr> Social Policy,</i> edited by Daniel Béland, Christopher Howard, and Kimberly J. Morgan, <span class="nobr">279–295.</span> New York, <abbr title="New York">NY</abbr>: Oxford University Press.</p>
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<p>Government Accountability Office. 2015. <i>Retirement Security: Most Households Approaching Retirement Have Low Savings.</i> <span class="nobr"><abbr class="spell">GAO</abbr>-15-419.</span> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">GAO</abbr>. <a href="https://www.gao.gov/products/gao-15-419">http://www.gao.gov/products/<abbr class="spell">GAO</abbr>-15-419</a>.</p>
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<p>Haaga, Owen, and Richard W. Johnson. 2012. “Social Security Claiming: Trends and Business Cycle Effects.” Working Paper <abbr title="Number">No.</abbr> <span class="nobr">2012-5.</span> Chestnut Hill, <abbr title="Massachusetts">MA</abbr>: Center for Retirement Research at Boston College. <a href="https://crr.bc.edu/wp-content/uploads/2012/02/wp-2012-5-508.pdf">http://crr.bc.edu/wp-content/uploads/2012/02/wp-2012-5-508.pdf</a>.</p>
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<p>Hardy, Melissa A., and Kim Shuey. 2000. “Pension Decisions in a Changing Economy: Gender, Structure, and Choice.” <i>Journals of Gerontology Series B: Psychological Sciences and Social Sciences</i> 55B(5): S271–S277.</p>
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<p>Herd, Pamela. 2009. “The Two-Legged Stool: The Reconfiguration of Risk in Retirement Income Security.” <i>Generations</i> 33(3): <span class="nobr">12–18.</span></p>
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<p>Holden, Sarah, and Daniel Schrass. 2016. “The Role of <abbr class="spell">IRA</abbr>s in <abbr>U.S.</abbr> Households' Saving for Retirement, 2015.” <i><abbr class="spell">ICI</abbr> Research Perspective</i> 22(1). <a href="https://www.ici.org/system/files/attachments/pdf/per22-01.pdf">https://www.ici.org/pdf/per22-01.pdf</a>.</p>
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<p>Iams, Howard M. 2016. “<a href="/policy/docs/ssb/v76n2/v76n2p17.html">Married Women's Projected Retirement Benefits: An Update</a>.” <i>Social Security Bulletin</i> 76(2): <span class="nobr">17–24.</span></p>
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<p>Iams, Howard M., and Patrick J. Purcell. 2013. “<a href="/policy/docs/ssb/v73n2/v73n2p77.html">The Impact of Retirement Account Distributions on Measures of Family Income</a>.” <i>Social Security Bulletin</i> 73(2): <span class="nobr">77–84.</span></p>
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<p>Iams, Howard M., and Christopher R. Tamborini. 2012. “<a href="/policy/docs/ssb/v72n2/v72n2p23.html">The Implications of Marital History Change on Women's Eligibility for Social Security Wife and Widow Benefits, <span class="nobr">1990–2009</span></a>.” <i>Social Security Bulletin</i> 72(2): <span class="nobr">23–28.</span></p>
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<p>Johnson, Richard W. 2016. “Cumulative Advantage and Retirement Security: What Does the Future Hold?” <i>Public Policy & Aging Report</i> 26(2): <span class="nobr">63–67.</span></p>
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<p>Knoll, Melissa A. Z., Christopher R. Tamborini, and Kevin Whitman. 2012. “I Do…Want to Save: Marriage and Retirement Savings in Young Households.” <i>Journal of Marriage and Family</i> 74(1): <span class="nobr">86–100.</span></p>
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<p>Mackenzie, George A. (Sandy). 2010. <i>The Decline of the Traditional Pension: A Comparative Study of Threats to Retirement Security</i>. New York, <abbr title="New York">NY</abbr>: Cambridge University Press.</p>
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<p>Miller, Billie Jean, and Sylvester J. Schieber. 2013. “Employer Plans, <abbr class="spell">IRA</abbr>s, and Retirement Income Provision: Making a Molehill Out of a Mountain.” <i>Insider</i> (October). https://www.towerswatson.com/en-<abbr class="spell">US</abbr>/Insights/Newsletters/Americas/insider/2013/employer-pensions-individual-retirement-savings-and-retirement-income-provision.</p>
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<p>———. 2014. “Contribution of Pension and Retirement Savings to Retirement Income Security: More Than Meets the Eye.” <i>Journal of Retirement</i> 1(3): <span class="nobr">14–29.</span></p>
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<p>Munnell, Alicia H. 2014. “<span class="nobr">401(k)</span>/<abbr class="spell">IRA</abbr> Holdings in 2013: An Update from the <abbr class="spell">SCF</abbr>.” <i>Issue in Brief</i> <abbr title="Number">No.</abbr> <span class="nobr">14-15.</span> Chestnut Hill, <abbr title="Massachusetts">MA</abbr>: Center for Retirement Research at Boston College. <a href="https://crr.bc.edu/wp-content/uploads/2014/09/IB_14-151.pdf">http://crr.bc.edu/wp-content/uploads/2014/09/<abbr class="spell">IB</abbr>_14-151.pdf</a>.</p>
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<p>Munnell, Alicia H., and Anqi Chen. 2014. “Do Census Data Understate Retirement Income?” <i>Issue in Brief</i> <abbr title="Number">No.</abbr> <span class="nobr">14-19.</span> Chestnut Hill, <abbr title="Massachusetts">MA</abbr>: Center for Retirement Research at Boston College. <a href="https://crr.bc.edu/wp-content/uploads/2014/12/IB_14-19-508.pdf">http://crr.bc.edu/wp-content/uploads/2014/12/<abbr class="spell">IB</abbr>_14-19-508.pdf</a>.</p>
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<p>National Institute on Aging. 2007. <i>Growing Older in America: The Health and Retirement Study.”</i> <abbr class="spell">NIH</abbr> publication <abbr title="Number">No.</abbr> <span class="nobr">07-5757.</span> Washington, <abbr class="spell">DC</abbr>: Department of Health and Human Services, National Institutes of Health, National Institute on Aging.</p>
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<p>O'Rand, Angela M. 2011. “The Devolution of Risk and the Changing Life Course in the United States.” <i>Social Forces</i> 90(1): <span class="nobr">1–16.</span></p>
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<p>Poterba, James M. 2014. “Retirement Security in an Aging Society.” <abbr class="spell">NBER</abbr> Working Paper <abbr title="Number">No.</abbr> 19930. Cambridge, <abbr title="Massachusetts">MA</abbr>: National Bureau of Economic Research. <a href="https://www.nber.org/papers/w19930">http://www.nber.org/papers/w19930</a>.</p>
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<p>Poterba, James M., Steven F. Venti, David A. Wise. 2011a. “The Composition and Drawdown of Wealth in Retirement.” <i>Journal of Economic Perspectives</i> 25(4): <span class="nobr">95–118.</span></p>
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<p>———. 2011b. “The Drawdown of Personal Retirement Assets.” <abbr class="spell">NBER</abbr> Working Paper <abbr title="Number">No.</abbr> 16675. Cambridge, <abbr title="Massachusetts">MA</abbr>: National Bureau of Economic Research. <a href="https://www.nber.org/papers/w16675">http://www.nber.org/papers/w16675</a>.</p>
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<p>Purcell, Patrick J. 2016. “<a href="/policy/docs/ssb/v76n4/v76n4p1.html">Employment at Older Ages and Social Security Benefit Claiming</a>.” <i>Social Security Bulletin</i> 76(4): <span class="nobr">1–17.</span></p>
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<p>Sass, Steven A. 2016. “How Work & Marriage Trends Affect Social Security's Family Benefits.” <i>Issue in Brief</i> <abbr title="Number">No.</abbr> <span class="nobr">16-9.</span> Chestnut Hill, <abbr title="Massachusetts">MA</abbr>: Center for Retirement Research at Boston College. <a href="https://crr.bc.edu/wp-content/uploads/2016/06/IB_16-9.pdf">http://crr.bc.edu/wp-content/uploads/2016/06/<abbr class="spell">IB</abbr>_16-9.pdf</a>.</p>
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<p>Semega, Jessica L. and Edward Welniak, <abbr title="Junior">Jr.</abbr> 2015. “The Effect of the Changes to the Current Population Survey Annual Social and Economic Supplement on Estimates of Income.” Paper presented at the Allied Social Science Associations Annual Meeting, Boston, <abbr title="Massachusetts">MA</abbr> (January 4).</p>
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<p>Shoven, John B., and Sita Nataraj Slavov. 2012. “The Decision to Delay Claiming Social Security Benefits: Theory and Evidence.” <abbr class="spell">NBER</abbr> Working Paper <abbr title="Number">No.</abbr> 17866. Cambridge, <abbr title="Massachusetts">MA</abbr>: National Bureau of Economic Research. <a href="https://www.nber.org/papers/w17866">http://www.nber.org/papers/w17866</a>.</p>
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<p>Shu, Suzanne B., John W. Payne, and Namika Sagara. 2014. “The Psychology of <abbr class="spell">SSA</abbr> Claiming Decisions: Toward the Understanding and Design of Interventions.” Paper presented at the 16<sup>th</sup> Annual Joint Conference of the Retirement Research Consortium, Washington <abbr class="spell">DC</abbr> (August <span class="nobr">7–8).</span></p>
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<p>Shuey, Kim M., and Angela M. O'Rand. 2004. “New Risks for Workers: Pensions, Labor Markets, and Gender.” <i>Annual Review of Sociology</i> 30: <span class="nobr">453–477.</span></p>
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<p>Social Security Administration. 2002. <i>Income of the Population 55 or Older, 2000.</i> <abbr class="spell">SSA</abbr> Publication <abbr title="Number">No.</abbr> <span class="nobr">13-11871.</span> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">SSA</abbr>. <a href="/policy/docs/statcomps/income_pop55/2000/index.html">https://www.socialsecurity.gov/policy/docs/statcomps/income_pop55/2000/index.html</a>.</p>
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<p>———. 2012. <i>Income of the Population 55 or Older, 2010.</i> <abbr class="spell">SSA</abbr> Publication <abbr title="Number">No.</abbr> <span class="nobr">13-11871.</span> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">SSA</abbr>. <a href="/policy/docs/statcomps/income_pop55/2010/index.html">https://www.socialsecurity.gov/policy/docs/statcomps/income_pop55/2010/index.html</a>.</p>
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<p>———. 2014. <i>Annual Statistical Supplement to the Social Security Bulletin, 2013.</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>. <a href="/policy/docs/statcomps/supplement/2013/index.html">https://www.socialsecurity.gov/policy/docs/statcomps/supplement/2013/index.html</a>.</p>
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<p>———. 2016a. <i>Fast Facts and Figures About Social Security, 2016.</i> <abbr class="spell">SSA</abbr> Publication <abbr title="Number">No.</abbr> <span class="nobr">13-11785.</span> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">SSA</abbr>. <a href="/policy/docs/chartbooks/fast_facts/2016/index.html">https://www.socialsecurity.gov/policy/docs/chartbooks/fast_facts/2016/index.html</a>.</p>
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<p>———. 2016b. <i>Income of the Population 55 or Older, 2014.</i> <abbr class="spell">SSA</abbr> Publication <abbr title="Number">No.</abbr> <span class="nobr">13-11871.</span> Washington, <abbr class="spell">DC</abbr>: <abbr class="spell">SSA</abbr>. <a href="/policy/docs/statcomps/income_pop55/2014/index.html">https://www.socialsecurity.gov/policy/docs/statcomps/income_pop55/2014/index.html</a>.</p>
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<p>Song, Jae G., and Joyce Manchester. 2007. “New Evidence on Earnings and Benefit Claims Following Changes in the Retirement Earnings Test in 2000.” <i>Journal of Public Economics</i> <span class="nobr">91(3–4)</span>: <span class="nobr">669–700.</span></p>
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<p><abbr class="spell">SSA</abbr>. <i>See</i> Social Security Administration.</p>
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<p>Warner, David F., Mark D. Hayward, and Melissa A. Hardy. 2010. “The Retirement Life Course in America at the Dawn of the Twenty-First Century.” <i>Population Research and Policy Review</i> 29(6): <span class="nobr">893–919.</span></p>
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<p>Wiatrowski, William J. 2012. “The Last Private Industry Pension Plans: A Visual Essay.” <i>Monthly Labor Review</i> 135(12): <span class="nobr">3–18.</span></p>
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