How Have People Responded to Changes in the Retirement Earnings Test in 2000?
by Jae G. Song and Joyce Manchester
Social Security Bulletin, Vol. 67, No. 1, 2007
Social Security Bulletin, Vol. 67, No. 1, 2007
Year | Turning ages 62–64 | Turning age 65 | Attained ages 65–69 | Attained ages 70–72 |
---|---|---|---|---|
Work participation | ||||
1996 | 52.33 | 40.52 | 26.30 | 15.79 |
1997 | 53.43 | 42.00 | 27.27 | 16.45 |
1998 | 53.98 | 42.93 | 28.32 | 17.17 |
1999 | 54.66 | 43.52 | 29.22 | 17.60 |
2000 | 55.67 | 44.85 | 30.72 | 18.87 |
2001 | 55.73 | 45.09 | 31.43 | 18.87 |
2002 | 55.39 | 45.13 | 31.85 | 19.48 |
2003 | 55.38 | 44.76 | 32.09 | 19.56 |
Benefit entitlement | ||||
1996 | 55.18 | 85.59 | 89.78 | 91.87 |
1997 | 54.19 | 85.21 | 89.60 | 91.94 |
1998 | 53.74 | 84.67 | 89.35 | 92.02 |
1999 | 53.30 | 85.26 | 89.38 | 92.04 |
2000 | 52.87 | 89.76 | 90.63 | 92.15 |
2001 | 51.93 | 89.27 | 91.00 | 91.81 |
2002 | 50.49 | 88.84 | 90.98 | 91.98 |
2003 | 48.65 | 85.38 | 91.18 | 91.96 |
SOURCE: Authors' tabulations using the 1 percent extract of the Social Security Administration's Master Earnings File and Master Beneficiary Record. |
Year | Turning ages 62–64 | Turning age 65 | Attained ages 65–69 | Attained ages 70–72 |
---|---|---|---|---|
1996 | 33.92 | 20.73 | 1.13 | 0.62 |
1997 | 33.06 | 20.88 | 1.09 | 0.23 |
1998 | 32.91 | 21.92 | 1.19 | 0.13 |
1999 | 32.27 | 22.13 | 1.45 | 0.10 |
2000 | 31.84 | 27.69 | 2.66 | 0.12 |
2001 | 32.03 | 27.60 | 0.69 | 0.08 |
2002 | 30.80 | 27.39 | 0.57 | 0.12 |
2003 | 29.66 | 25.04 | 0.83 | 0.13 |
SOURCE: Authors' tabulations using the 1 percent extract of the Social Security Administration's Master Earnings File and Master Beneficiary Record. |
Age at end of t1 | t1=1996 t2=1997 |
t1=1997 t2=1998 |
t1=1998 t2=1999 |
t1=1999 t2=2000 |
t1=2000 t2=2001 |
t1=2001 t2=2002 |
t1=2002 t2=2003 |
---|---|---|---|---|---|---|---|
Not working in t1 to working in t2 | |||||||
65 | 16.58 | 17.36 | 17.73 | 19.44 | 19.35 | 18.37 | 18.40 |
66 | 14.75 | 15.91 | 16.20 | 18.10 | 17.74 | 17.08 | 16.32 |
67 | 13.30 | 13.89 | 14.10 | 16.23 | 15.56 | 14.57 | 14.95 |
68 | 11.10 | 12.01 | 11.99 | 13.70 | 13.86 | 13.46 | 13.01 |
69 | 9.97 | 10.41 | 11.01 | 11.57 | 11.69 | 11.16 | 11.19 |
Not entitled in t1 to entitled in t2 | |||||||
65 | 1.76 | 1.96 | 2.62 | 4.72 | 0.75 | 0.86 | 1.32 |
66 | 0.97 | 1.06 | 1.2 | 2.96 | 0.59 | 0.37 | 0.85 |
67 | 0.72 | 0.69 | 1.06 | 2.0 | 0.48 | 0.27 | 0.35 |
68 | 0.65 | 0.67 | 0.74 | 1.61 | 0.5 | 0.42 | 0.41 |
69 | 1.24 | 1.49 | 1.52 | 1.74 | 1.09 | 0.87 | 1.12 |
SOURCE: Authors' tabulations using the 1 percent extract of the Social Security Administration's Master Earnings File and Master Beneficiary Record. |
Percentile | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 |
---|---|---|---|---|---|---|---|---|
Those turning age 65 | ||||||||
40th | 7.800 | 8.174 | 9.000 | 9.138 | 10.263 | 10.850 | 11.618 | 12.285 |
50th | 10.562 | 11.196 | 12.479 | 12.313 | 14.609 | 15.300 | 16.606 | 17.200 |
60th | 14.494 | 15.149 | 16.972 | 16.214 | 19.931 | 21.330 | 22.747 | 23.894 |
70th | 22.185 | 23.008 | 24.651 | 23.918 | 27.825 | 28.564 | 30.200 | 31.986 |
80th | 32.206 | 33.065 | 35.825 | 35.247 | 38.596 | 39.082 | 41.564 | 44.174 |
Those who have attained aged 65–69 | ||||||||
40th | 5.754 | 5.888 | 6.264 | 6.639 | 6.984 | 7.875 | 8.304 | 8.787 |
50th | 7.884 | 8.207 | 8.586 | 9.111 | 9.600 | 10.791 | 11.497 | 12.250 |
60th | 10.400 | 10.912 | 11.359 | 11.997 | 12.750 | 14.468 | 15.508 | 16.737 |
70th | 12.766 | 13.551 | 14.437 | 15.394 | 17.000 | 19.602 | 21.337 | 23.120 |
80th | 21.549 | 22.208 | 22.632 | 23.652 | 25.354 | 28.824 | 30.882 | 33.023 |
SOURCE: Authors' tabulations using the 1 percent extract of the Social Security Administration's Master Earnings File and Master Beneficiary Record. |
Age at end of t1 | t1=1996 t2=1997 |
t1=1997 t2=1998 |
t1=1998 t2=1999 |
t1=1999 t2=2000 |
t1=2000 t2=2001 |
t1=2001 t2=2002 |
t1=2002 t2=2003 |
---|---|---|---|---|---|---|---|
Earnings at t1 are greater than or equal to zero | |||||||
65 | 16.58 | 17.36 | 17.73 | 19.44 | 19.35 | 18.37 | 18.40 |
66 | 14.75 | 15.91 | 16.20 | 18.10 | 17.74 | 17.08 | 16.32 |
67 | 13.30 | 13.89 | 14.10 | 16.23 | 15.56 | 14.57 | 14.95 |
68 | 11.10 | 12.01 | 11.99 | 13.70 | 13.86 | 13.46 | 13.01 |
69 | 9.97 | 10.41 | 11.01 | 11.57 | 11.69 | 11.16 | 11.19 |
Earnings at t1 are greater than zero | |||||||
65 | 14.38 | 15.26 | 15.41 | 16.65 | 17.36 | 16.53 | 16.38 |
66 | 12.68 | 13.66 | 14.17 | 15.18 | 15.92 | 15.22 | 14.33 |
67 | 11.27 | 12.01 | 12.16 | 13.85 | 13.86 | 12.84 | 13.04 |
68 | 9.52 | 10.51 | 10.42 | 11.39 | 12.36 | 11.93 | 11.42 |
69 | 8.56 | 8.93 | 9.29 | 9.64 | 10.09 | 9.92 | 9.87 |
SOURCE: Authors' tabulations using the 1 percent extract of the Social Security Administration's Master Earnings File and Master Beneficiary Record. |
Percentile | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 |
---|---|---|---|---|---|---|---|
Those who have attained aged 65–69 | |||||||
10th | 0.00056 | 0.03683 | -0.02053 | 0.02908 | -0.07619 | -0.00565 | -0.11714 |
20th | -0.20244 | -0.29371 | -0.34971 | -0.32041 | -0.53094 | -0.44509 | -0.54072 |
30th | -0.16369 | -0.36904 | -0.47323 | -0.67247 | -0.63701 | -0.74058 | -0.9167 |
40th | -0.34477 | -0.52449 | -0.59893 | -0.5643 | -0.6323 | -0.69133 | -0.92513 |
50th | -0.31006 | -0.65198 | -0.67478 | -0.48731 | -0.24625 | -0.28436 | -0.34423 |
60th | -0.32557 | -0.36787 | -0.31126 | 0.13524 | 0.46723 | 0.80307 | 0.869911 |
70th | -0.25869 | -0.61414 | -0.81221 | -0.23893 | 0.533749 | 1.039548 | 1.249459 |
80th | -0.21848 | -0.75587 | -0.99323 | -0.65697 | 0.746954 | 0.985767 | 1.06506 |
90th | -0.15816 | -1.30889 | -1.83359 | -2.23557 | -1.32472 | -1.42702 | -1.45545 |
Those turning age 65 | |||||||
10th | 0.17485 | 0.20848 | 0.2435 | 0.19588 | 0.31106 | 0.18193 | 0.26088 |
20th | 0.194055 | 0.384275 | 0.23257 | 0.410235 | 0.339365 | 0.396805 | 0.47337 |
30th | 0.27262 | 0.29078 | 0.08286 | 0.317939 | 0.081929 | 0.32398 | 0.36899 |
40th | 0.1762 | 0.2872 | 0.127579 | 0.99647 | 0.484259 | 0.744749 | 0.75802 |
50th | 0.051597 | 0.041761 | -0.27601 | 1.532 | 1.445913 | 2.27664 | 2.035078 |
60th | 0.049531 | 0.547431 | -0.54001 | 1.70617 | 1.759881 | 2.538312 | 2.399152 |
70th | -0.2506 | 0.589625 | -1.3417 | 1.278448 | 1.159056 | 1.625686 | 2.544241 |
80th | -0.77987 | -0.09979 | -1.45721 | 0.711451 | -0.22342 | 0.035698 | 0.415678 |
90th | -1.59195 | -0.27562 | -1.87307 | 0.257538 | -1.05071 | -0.53049 | 0.260109 |
SOURCE: Authors' estimates. |