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Employment Support for the Transition to Retirement
David C Stapleton1, Jody Schimmel Hyde1
11 Center for Studying Disability Policy, Mathematica Policy Research, Washington, DC, USA.
Research on Aging
|February 10, 2017
Summary
A new Employment Support for the Transition to Retirement program could reduce poverty for older workers facing health issues. This initiative aims to encourage continued employment, offering greater economic security and potentially lowering federal expenditures.
Area of Science:
- Social Gerontology
- Public Policy
- Labor Economics
Background:
- Many older workers experience health events near retirement, limiting work capacity.
- Existing public programs offer inadequate support, failing to prevent poverty or encourage continued employment.
- Current policies often facilitate premature retirement rather than workforce continuation.
Purpose of the Study:
- Propose a novel program: Employment Support for the Transition to Retirement (ESTR).
- Design ESTR to incentivize older workers with health limitations to remain employed.
- Reduce reliance on federal disability and early retirement benefits.
Main Methods:
- Conceptual program design and policy proposal.
- Illustrative analysis of a simplified ESTR model.
- Economic impact assessment focusing on poverty reduction and cost-effectiveness.
Main Results:
- A simplified ESTR program could significantly decrease poverty among older workers with health limitations.
- ESTR is projected to be more cost-effective per participant than current programs.
- The program has the potential to enhance economic security for this demographic.
Conclusions:
- ESTR offers a viable strategy to support older workers with health challenges.
- Implementing ESTR could lead to reduced federal spending on disability and early retirement.
- This policy innovation can contribute to social security reforms and improved economic outcomes.
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