Social Security and Total Replacement Rates in Disability and Retirement

Khan, Mashfiqur R.; Rutledge, Matthew S.; Sanzenbacher, Geoffrey T.

doi:10.2139/ssrn.2972700

Cited by 5 publications

(4 citation statements)

References 19 publications

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“…We did not see the differences in financial well-being of DI beneficiaries or early OASI claimers relative to OASI claimers widening with age, but we also did not see the differences converging. These findings are consistent with the small but growing literature highlighting how individuals who experience disability during their working years fare in retirement (Johnson et al, 2007; Khan, Rutledge, & Sanzenbacher, 2017; McGarry & Skinner, 2009; Meyer & Mok, 2016).…”

Section: Discussionsupporting

confidence: 89%

The Postretirement Well-Being of Workers With Disabilities

Hyde

2018

Journal of Disability Policy Studies

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Older workers who develop significant limitations in health or functioning face declines in income and consumption and an increased likelihood of poverty in the years prior to retirement. We assess the extent to which those differences persist after reaching retirement age. We use the Health and Retirement Study (HRS) linked to Social Security Administration (SSA) records to compare the postretirement financial well-being of workers who experienced disability onset during their working years with those who did not, based on their claiming behavior for Social Security disability and retirement benefits. We find that even after full retirement age, gaps that emerged prior to retirement persist; those who experienced disability prior to retirement had lower incomes, were more likely to be in poverty, and had significantly lower wealth. Workers with disabilities who claimed Social Security Disability Insurance (DI) fared better than those who were rejected for such benefits, yet both groups were worse off than those who delayed claiming benefits until they were eligible for Social Security Old Age and Survivors Insurance (OASI) benefits. Our findings indicate that any changes to the Social Security benefit structure must be mindful of the short- and longer term implications for already-vulnerable groups of workers.

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Section: Discussionsupporting

confidence: 89%

The Postretirement Well-Being of Workers With Disabilities

Hyde

2018

Journal of Disability Policy Studies

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“…SSDI provides benefits to disabled individuals who worked in a covered job for five or more of the 10 years prior to application. In 2017, this program cost $138B (Social Security Administration, 2018a) and provided recipients with an average of 55% of their pre‐disability earnings (Khan, Rutledge, & Sanzenbacher, 2016). SSDI benefits end after medical recovery or when a recipient ages into Social Security retirement benefits.…”

Section: Us Disability Programsmentioning

confidence: 99%

Marijuana legalization and disability claiming

2020

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We study the effect of recent legalization of recreational marijuana use laws (RMLs) in the United States on new applications and allowances for Social Security Disability Insurance and Supplemental Security Income over the period 2001–2019. We combine administrative caseload data from the Social Security Administration with state policy changes using two‐way fixed‐effects methods. We find that RML adoption increases applications for both benefits. However, there is no change in allowances post‐RML. We provide suggestive evidence that the observed changes in applications post‐RML are driven by increases in marijuana misuse and selective migration, and decreases in unemployment.

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“…If not offered rehabilitation benefits, students are eligible for State Education Support 6 One difference is that there is no offset for workers' compensation in Denmark. SSDI caps the total wage replacement at 80% (Khan et al, 2017).…”

Section: Government Transfersmentioning

confidence: 99%