AN NBER PUBLICATION
ISSUE: No. 1, March 2005
The Bulletin on Aging & Health
The outlays of the U.S. Social Security system are projected to rise dramatically over the next several decades as the baby boomers retire. While benefits today cost about 11 percent of taxable payroll, they are expected to rise to over 15 percent by the time the last boomers retire in 2026.
In order to partially pre-fund these outlays, Congress raised payroll taxes in 1983 beyond the level needed to pay benefits. The large annual Social Security surpluses resulting from...
Article
With the baby boom generation nearing retirement age and life expectancies continuing to increase, the U.S. population is aging rapidly. By 2030, the share of the U.S. population that is over age 65 is projected to be higher than it is in Florida today.
Population aging may affect financial markets if individuals tend to amass assets during their working years and spend them during retirement. When there is a large cohort such as the baby boom, there may be more demand...
Article
The Market for Long-Term Care InsuranceExpenditures on long-term care services in the U.S. are high and growing - they reached $135 Billion in 2004, or 1.2 percent of GDP, and are projected to triple in real terms by 2040 as the U.S. population ages and health care costs continue to rise.
Long-term care expenditures represent a significant financial risk for the elderly. A 65-year-old woman has a 44 percent chance of entering a nursing home during her lifetime and, upon...