NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Changing the Social Security Rules for Workers over 65: Proposed Policies and Their Effects

Alan L. Gustman, Thomas L. Steinmeier

NBER Working Paper No. 3087 (Also Reprint No. r1633)
Issued in October 1991
NBER Program(s):   LS

This paper simulates the effects of proposals to modify procedures for adjusting the Social Security benefits of those who work after normal retirement age. A basic set of policies, currently under consideration, is projected to raise long run costs by $30 billion dollars net of taxes, while inducing an increase of 5 percent in the number of full-time male workers between the ages of 65 and 69. Alternative policies may create very different flows of funds. Outcomes, especially in the short run, will vary widely with the timing of the application decision for benefits.

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Published: "Changing the Social Security Rules for Work After 65." From Industrial & Labor Relations Review, Vol. 44, No. 4, pp. 733-745, (July 1991).

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