The Impact of Late-Career Health and Employment Shocks on Social Security and Other Wealth

38 Pages Posted: 27 Jul 2008

See all articles by Richard W. Johnson

Richard W. Johnson

Urban Institute - Income and Benefits Policy Center; National Academy of Social Insurance (NASI)

Gordon Mermin

affiliation not provided to SSRN

Dan Murphy

affiliation not provided to SSRN

Date Written: December 2007

Abstract

Although health and employment shocks are fairly common at older ages and often derail retirement savings plans, Social Security's disability insurance, spouse and survivor benefits, and progressive benefit formula may provide important protections. By contrast, traditional employer-sponsored pension benefits may be especially vulnerable to health and employment shocks immediately before benefit take-up, because pension wealth generally grows rapidly near the end of the career and workers forfeit these increases if they separate early. This study examines the impact of disability onset and job layoffs on Social Security wealth, traditional employer-sponsored pension wealth, and other household wealth for a nationally representative sample of workers age 51 to 55 in 1992.

Suggested Citation

Johnson, Richard Warren and Mermin, Gordon and Murphy, Dan, The Impact of Late-Career Health and Employment Shocks on Social Security and Other Wealth (December 2007). Available at SSRN: https://ssrn.com/abstract=1171722 or http://dx.doi.org/10.2139/ssrn.1171722

Richard Warren Johnson (Contact Author)

Urban Institute - Income and Benefits Policy Center ( email )

2100 M Street, NW
Washington, DC 20037
United States
202-261-5541 (Phone)
202-833-4388 (Fax)

National Academy of Social Insurance (NASI)

1776 Massachusetts Avenue, NW
Suite 615
Washington, DC 20036-1904
United States

Gordon Mermin

affiliation not provided to SSRN ( email )

Dan Murphy

affiliation not provided to SSRN

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