Pfau, Wade Donald (2006): Comparing the Impacts of Social Security Benefit Reductions on the Income Distribution of the Elderly. Published in: National Tax Journal , Vol. LIX, No. 2 (June 2006): pp. 195-210.
Download (353kB) | Preview
Benefit reductions will likely be a part of the eventual Social Security reform in the United States. This research attempts to quantify the intragenerational and intergenerational impacts of different benefit reduction proposals on the incomes of the elderly. Reforms include across-the-board benefit cuts, price indexing, and reductions to the cost-of-living adjustment. Restoring the projected seventy-five year balance for the Trust Fund through benefit reductions will significantly lower benefits, though the impacts vary by type of reform. Nonetheless, the savings for the Social Security Trust Fund will exceed the accompanying increases in the poverty gap, leaving room to provide minimal income guarantees.
|Item Type:||MPRA Paper|
|Original Title:||Comparing the Impacts of Social Security Benefit Reductions on the Income Distribution of the Elderly|
|Keywords:||Social Security; price indexing; cost-of-living adjustment; poverty; benefit reductions|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household
|Depositing User:||Wade D. Pfau|
|Date Deposited:||08. Dec 2009 07:03|
|Last Modified:||23. Feb 2015 21:45|
Amble, Nathan, and Ken Stewart. “Experimental Price Index for Elderly Consumers.” Monthly Labor Review 117 No. 5 (May, 1994): 11-16.
Biggs, Andrew G., Jeffrey R. Brown, and Glenn Springstead. “Alternative Methods of Price Indexing Social Security: Implications for Benefits and System Financing.” NBER Working Paper No. 11406. Cambridge, MA: National Bureau of Economic Research, 2005.
Furman, Jason, and Robert Greenstein. “An Overview of Issues Raised by the Administration’s Social Security Plan.” Washington, D.C.: Center on Budget and Policy Priorities, February, 2005.
Goss, Stephen C. “Estimated Financial Effects of a Comprehensive Social Security Reform Proposal Including Progressive Price Indexing – Information.” Memorandum to Bob Pozen from Stephen C. Goss, Chief Actuary of the Social Security Administration, February, 2005.
Johnson, Richard W. “The Distributional Implications of Reductions in Social Security COLAs.” Urban Institute Brief Series No. 5. Washington, D.C.: The Urban Institute, 1999.
Johnson, Richard W. “Distributional Implications of Social Security Reform for the Elderly: The Impact of Revising COLAs, the Normal Retirement Age, and the Taxation of Benefits." National Tax Journal 52 No. 3 (September, 1999): 505-529.
Koitz, David, Geoffrey Kollmann, and Dawn Nuschler. Social Security: What Happens to Future Benefit Levels Under Various Reform Options. CRS Report for Congress. Washington, D.C.: The Congressional Research Service, August, 2001.
Pfau, Wade D. Essays on Social Security Reform. Unpublished Ph.D. dissertation, Department of Economics, Princeton University, 2003.
President’s Commission to Strengthen Social Security. Strengthening Social Security and Creating Personal Wealth for All Americans. Washington, D.C., December, 2001.
Steuerle, Eugene, Christopher Spiro, and Adam Carasso. “Social Security’s Cost-of-Living Adjustments: Can Reforms Protect the Most Vulnerable Recipients?” Urban Institute Straight Talk on Social Security and Retirement Policy Series No. 8. Washington, D.C.: Urban Institute, September, 1999.
U.S. General Accounting Office. Social Security: Program’s Role in Helping Ensure Income Adequacy. GAO-02-62, Washington, D.C., November, 2001.
U.S. Social Security Administration Board of Trustees. Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds. Washington, D.C.: Government Printing Office, 2005.
U.S. Social Security Administration Office of Policy. Income of the Population 55 or Older, 2002. Washington, D.C., March, 2005.