This project examines how labor supply and Social Security claiming responded to the phased-in increase in Social Security’s full retirement age, which was age 65 for cohorts born through 1937, and had increased to age 66 for cohorts born between 1943 and 1954. It focuses particularly on potential differences between labor supply and claiming responses; that is, to what extent might the reform delay when people claim benefits, but not their departure from work? Preliminary findings from a preceding phase of the project suggest that the increase in the full retirement age affected claiming behavior more than retirement behavior. Continuing work is exploring the roles of “learning” across cohorts, employer-specific norms, and geographic variations.
Social Security Claiming and Retirement Responses to FRA Changes
Investigators: Itzik Fadlon (PI, USCD and NBER); Manasi Deshpande (UChicago, NBER, and SSA)
Labor force participation
Full retirement age