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Selected Research & Analysis: Old-Age and Survivors Insurance (OASI) > Retirement Earnings Test

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Retirement Earnings Test
Program Explainers (released June 2016)
Modeling Behavioral Responses to Eliminating the Retirement Earnings Test
from Social Security Bulletin, Vol. 73, No. 1 (released February 2013)
by Anya Olsen and Kathleen Romig

The retirement earnings test (RET) is an often-misunderstood aspect of the Social Security program. Policymakers have proposed reforming the RET as a way to encourage working at older ages. However, this could also cause earlier benefit claiming. We use Modeling Income in the Near Term data to analyze the complete repeal of the earnings test for beneficiaries aged 60 or older, first assuming no behavioral responses to repeal and secondly assuming changes to benefit claiming and workforce participation behaviors. Our lifetime results show that the assumed behavioral response—particularly the benefit claiming change—has a bigger effect than the RET policy change itself.

Have People Delayed Claiming Retirement Benefits? Responses to Changes in Social Security Rules
from Social Security Bulletin, Vol. 67, No. 2 (released February 2008)
by Jae G. Song and Joyce Manchester

Using a 1 percent sample of Social Security Administration data, this article documents and analyzes responses in the entitlement age for old-age benefits following the recent changes in Social Security rules. Both rules, the removal of the retirement earnings test (RET) for persons who are at the full retirement age (FRA) through age 69 in 2000 or later and a gradual increase in the FRA for those who reach age 62 in 2000 or later, are expected to affect the age at which people claim Social Security retirement benefits (or entitlement age) and the work behavior of older Americans.

New Evidence on Earnings and Benefit Claims Following Changes in the Retirement Earnings Test in 2000
ORES Working Paper No. 107 (released June 2006)
by Jae G. Song and Joyce Manchester

In April 2000, Congress enacted the Senior Citizens Freedom to Work Act of 2000, which removed the retirement earnings test for individuals at the full retirement age and older. This paper examines the labor force activity of workers aged 65–69 relative to older and younger workers in response to the removal of the earnings test. We use the 1 percent sample of Social Security administrative data that covers the period from 4 years before to 4 years following the removal of the test. Quantile regression methods allow us to identify the earnings levels of workers who change their work effort.

Evaluating the Initial Impact of Eliminating the Retirement Earnings Test
from Social Security Bulletin, Vol. 65, No. 1 (released May 2004)
by Jae G. Song

How did workers aged 65–69 respond to the removal of the retirement earnings test in 2000? Using Social Security administrative data matched with data from the Survey of Income and Program Participation, the author finds that the higher earners in this group increased their earnings, while the lower earners did not. The author reports an acceleration of benefit applications by workers aged 65–69 but no clear evidence of increased employment in this age group.

The Impact of Repealing the Retirement Earnings Test on Rates of Poverty
from Social Security Bulletin, Vol. 63, No. 2 (released December 2000)
by Michael A. Anzick and David A. Weaver

This article summarizes an analysis of the poverty implications of repealing the retirement earnings test (RET). Repealing the RET at the normal retirement age or older is unlikely to generate large poverty effects. Removing the test at age 62 or older, however, could lead to large increases in poverty.

Effect on Benefits of Earnings at Ages 65 or Older, 1995
from Social Security Bulletin, Vol. 62, No. 1 (released June 1999)
by Bertram Kestenbaum, Michael Shackleford, and Chris Chaplain

A major policy issue for the Social Security program is the treatment of earnings of persons who have attained retirement age. This article discusses the retirement test and recomputation of benefit provisions, and provides statistical data for 1995.

In 1995, about 806,000 persons aged 65–70 had significant earnings resulting in the withholding of benefits by the retirement test. About 1,659,000 persons aged 65 or older realized an increase in their benefit amount because of their earnings.

Beneficiaries Affected by the Annual Earnings Test, 1989
from Social Security Bulletin, Vol. 56, No. 1 (released January 1993)
by Joseph Bondar
The Earnings Test and the Short-Run Work Response to Its Elimination
from Social Security Bulletin, Vol. 53, No. 9 (released September 1990)
by Michael D. Packard
Simulating Aggregate and Distributional Effects of Various Plans for Modifying the Retirement Earnings Test
ORES Working Paper No. 46 (released July 1990)
by David Pattison, Benjamin Bridges, Michael V. Leonesio, and Bernard Wixon

Social Security's retirement test continues to receive considerable attention among policymakers. During the past several years a variety of proposals have been advanced that would modify or eliminate the test for persons aged 65–69. In January 1989, we completed a study report, prepared for SSA internal use, that examined several of these proposals, analyzing their effect on earnings, taxes, and benefits in the first year of implementation, assumed to be 1990. The analysis included both aggregate estimates and estimates for selected population subgroups.

Although the specific proposals for modifying the retirement test have changed somewhat during the past 2 years, continued congressional interest has prompted the release of this initial version of our research for public discussion. Because we are in the process of revising the report for final publication, readers are cautioned that numbers and interpretations contained in this paper are subject to change.

The Effects of the Social Security Earnings Test on the Labor-Market Activity of Older Americans: A Review of the Evidence
from Social Security Bulletin, Vol. 53, No. 5 (released May 1990)
by Michael V. Leonesio
A Review of the Net Revenue Estimates in Robbins and Robbins, "Paying People Not to Work"
ORES Working Paper No. 41 (released January 1990)
by David Pattison

This note discusses the net revenue estimates in the report "Paying People Not to Work: the Economic Cost of the Social Security Retirement Earnings Limit," by Aldona Robbins and Gary Robbins.

Beneficiaries Affected by the Annual Earnings Test in 1982
from Social Security Bulletin, Vol. 49, No. 5 (released May 1986)
by Barbara A. Lingg
Beneficiaries Affected by the Annual Earnings Test in 1980
from Social Security Bulletin, Vol. 47, No. 11 (released November 1984)
by Barbara A. Lingg
Beneficiaries Affected by the Annual Earnings Test in 1978
from Social Security Bulletin, Vol. 46, No. 4 (released April 1983)
by Barbara A. Lingg
Beneficiaries Affected by the Annual Earnings Test in 1977
from Social Security Bulletin, Vol. 43, No. 12 (released December 1980)
by Barbara A. Lingg
Distribution of Increased Benefits Under Alternative Earnings Tests
from Social Security Bulletin, Vol. 43, No. 9 (released September 1980)
by Louis Esposito, Lucy B. Mallan, and David Podoff
Tax Impact From Elimination of the Retirement Test
from Social Security Bulletin, Vol. 42, No. 9 (released September 1979)
by Josephine G. Gordon and Robert N. Schoeplein
Beneficiaries Affected by the Annual Earnings Test in 1975
from Social Security Bulletin, Vol. 41, No. 12 (released December 1978)
by Barbara A. Lingg
Beneficiaries Affected by Annual Earnings Test in 1973
from Social Security Bulletin, Vol. 40, No. 9 (released September 1977)
by Barbara A. Lingg
Retired-Worker Beneficiaries Affected by the Annual Earnings Test in 1971
from Social Security Bulletin, Vol. 38, No. 8 (released August 1975)
by Barbara A. Lingg
The Retirement Test: An International Study
from Social Security Bulletin, Vol. 37, No. 7 (released July 1974)
by Elizabeth Kreitler Kirkpatrick
The Retirement Test: Its Effect on Older Workers' Earnings
from Social Security Bulletin, Vol. 31, No. 6 (released June 1968)
by Kenneth G. Sander
Earnings Test Under Old-Age, Survivors, and Disability Insurance: Basis, Background, and Experience
from Social Security Bulletin, Vol. 27, No. 5 (released May 1964)
by Robert J. Myers
Old-Age and Survivors Insurance: A Report on the Retirement Test
from Social Security Bulletin, Vol. 23, No. 10 (released October 1960)
Old-Age and Survivors Insurance: Operation of the Annual Retirement Test
from Social Security Bulletin, Vol. 19, No. 3 (released March 1956)
by Aaron Krute
Old-Age and Survivors Insurance: Retirement Test Under the 1954 Amendments
from Social Security Bulletin, Vol. 17, No. 12 (released December 1954)
by Robert J. Myers
Basis and Background of the Retirement Test
from Social Security Bulletin, Vol. 17, No. 3 (released March 1954)
by Robert J. Myers
Old-Age and Survivors Insurance: Retirement Test Experience
from Social Security Bulletin, Vol. 16, No. 11 (released November 1953)
by Robert J. Myers