A Model of Social Security and Retirement Decisions.

Abstract

The paper analyzes the potential inducement to retire earlier and the effects on lifetime savings in the presence of social security. The framework is a model of intertemporal utility maximization by individuals with endogenous retirement age. Aggregate behavior is examined against two alternative hypotheses. First, payments to and benefits from social security are equal for each generation. Second, a system based on a 'pay-as-you-go' principle which allows for intergenerational transfers. Among the issues analyzed: the possibility of multiple equilibria; the effects on the optimum retirement age and on the optimum wealth-income ratio at retirement of changes in the 'replacement ratio' and the effects of changes in the population long-run growth rate on implied tax-rates. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1976
Accession Number
ADA036149

Entities

People

  • Eytan Sheshinski

Organizations

  • Harvard University

Tags

Communities of Interest

  • Biomedical

DTIC Thesaurus Topics

  • Age Distribution
  • Demographic Cohorts
  • Economic Systems
  • Efficiency
  • Equations
  • Finance
  • Lepidoptera
  • Mathematics
  • Military Research
  • Money
  • Quadratic Equations
  • Security
  • Social Security
  • Steady State
  • United States
  • Universities

Fields of Study

  • Economics

Readers

  • Economics
  • Life Cycle Cost Analysis
  • Military Mobilization and Reserve Forces Studies.