Social security reforms and poverty among older dual-earner couples

Area of Science:

• Economics
• Social Policy
• Gerontology

Background:

• Dual-earner couples represent a significant demographic in the workforce.
• Retirement decisions are complex, influenced by financial, social, and policy factors.
• Social Security policy changes can have profound effects on retirement planning and outcomes.

Purpose of the Study:

• To analyze factors influencing retirement decisions for couples where both spouses work.
• To assess the potential impact of past and prospective Social Security reforms on retirement ages and incomes for older working couples.
• To examine how Social Security rule changes affect retirement decisions and poverty incidence among dual-earner couples.

Main Methods:

• Development of a framework to assess Social Security reforms.
• Analysis of empirical evidence from the United States.
• Examination of policy changes' effects on retirement ages, incomes, and poverty.

Main Results:

• Many proposed Social Security benefit reforms are projected to increase system revenues.
• These reforms are also likely to negatively affect the economic status of a substantial portion of dual-earner couples.
• Changes in Social Security rules can significantly alter retirement decisions for both husbands and wives.

Conclusions:

• Policy reforms aimed at enhancing Social Security revenues may inadvertently increase economic hardship for retired dual-earner couples.
• Further research is needed to balance fiscal sustainability with the economic security of older working couples.
• Understanding the nuanced effects of policy on diverse household structures is crucial for effective social welfare planning.