Proposals to ‘increase the retirement age’ under Social Security now appear frequently as part of plans to close the program’s projected long-term deficit. These proposals usually call for an increase in the age at which unreduced benefits are paid. That age, now 66, is scheduled to increase to 67 for everyone turning 62 in 2022 or later.

Social Security Disability Insurance (SSDI) applications and receipts vary greatly by state (McVicar 2006; Bound and Burkhauser 1999; Rupp and Stapleton 1998), which has led to concerns about potential inconsistencies in the application of disability standards. This possibility has prompted numerous Congressional hearings and reports and led the Social Security Advisory Board (2001a; 2001b) to express concern about the Social Security Administration’s (SSA) ability to disentangle the potential causes.

Much of the previous work focuses on the SSDI rolls, allowance rates or award rates; not as much attention has been paid to application rates (also referred to as filing rates) since Rupp and Stapleton (1998) summarized the known factors affecting caseloads.

Work by the Social Security Administration (SSA 1988) finds that economic and demographic differences are significant factors in explaining state SSDI application rates, but their sample lacks information about the underlying health of the population. Strand (2002) advances this work by adding some, albeit limited, health and health insurance information but also covers a very short time period (1997-1999). Duggan and Imberman (2009) explore the relationship between applications and the unemployment rate but do not control for other potentially confounding factors.

Recent changes in retirement trends and patterns have raised questions about the likely retirement behavior of baby boomers, the large cohort born between 1946 and 1964.

Today, the average retirement age is 63. If people continue to retire at 63, they are going to face a severe decline in living standards at retirement for a number of reasons.

While 401(k) plans now dominate the private sector, defined benefit plans remain the norm among state and local governments. Why have public sector employers not shifted from defined benefit plans to 401(k)s like their private sector counterparts?

Although defined benefit plans dominate the state and local sector, in the last decade twelve states have introduced some form of defined contribution plan.

The stock market crash of 2008 significantly dimmed the retirement prospects of workers approaching retirement. These workers are heavily dependent on 401(k) plans, as opposed to traditional defined benefit pensions, as a source of retirement income.