Key Findings Details
Projecting Behavioral Responses to the Next Generation of Retirement Policies
Alan L. Gustman and Thomas L. Steinmeier
- From age 62 through full retirement age, the earnings test reduces full-time work by married men by about four percentage points, or by about ten percent of married men at full-time work.
- Abolishing a minimum hours constraint on employment would induce more than twice as many people to enter partial retirement as would leave full-time work.
- If all benefits from personal accounts could be taken as a lump sum, the fraction not retired at age 62 would fall by about 5 percentage points compared to a system where there is mandatory annuitization of benefits.