Briefing
Lifespan Inequality and Social Security Reform
Abstract: What does lifespan inequality mean for Social Security reform? Using a life-cycle model in which the rich tend to outlive the poor, the researchers analyze how various reforms affect the trade-off between distributing lifetime Social Security benefits more equally and encouraging society's most productive members to work longer. They find that social welfare is maximized when beneļ¬ts are independent of lifetime earnings, the payroll tax cap remains near its current level, and benefits are made less dependent on the age at which they are initially claimed.
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https://www.richmondfed.org/-/media/richmondfedorg/publications/research/economic_brief/2020/pdf/eb_20-12.pdf
Description: Article
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Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2020-11
Volume: 20
Issue: 12
Pages: 4 pgs.