Older workers uninsured for retired-worker benefits

Area of Science:

• Social Security research
• Retirement policy analysis
• Labor economics

Background:

• Social Security retirement benefits are crucial for elderly financial security.
• Eligibility for retired-worker benefits requires a minimum number of work credits.
• Previous research has not fully quantified the extent of ineligibility due to insufficient work history.

Purpose of the Study:

• To estimate the number of individuals who worked in Social Security-covered employment but did not meet minimum requirements for retired-worker benefits.
• To identify demographic characteristics of those ineligible for benefits.
• To analyze the impact of recent work history on benefit eligibility.

Main Methods:

• Analysis of a sample of individuals near retirement age in 1973.
• Estimation of ineligibility rates based on covered work history.
• Comparison of ineligibility percentages for different time periods of employment.

Main Results:

• Approximately 70% of ineligible individuals were women, with an average of 8 quarters of work.
• Many ineligible persons had no covered work since 1950.
• An estimated 12% of men and 29% of women (aged 57-64 in 1973) with some covered employment (1937-73) were ineligible.
• Ineligibility decreased for those with more recent work history (post-1950).

Conclusions:

• A significant portion of individuals, especially women, may not qualify for Social Security retired-worker benefits due to insufficient work credits.
• Recent work history is a key factor in determining eligibility.
• Policy considerations may be needed to address benefit gaps for those with limited or intermittent work histories.