The Inequitable Effects of Raising the Retirement Age on Blacks and Low-Wage Workers. Issue 1 (March 2019)

• Record Type: Journal Article
• Authors: Moore, Kyle; Ghilarducci, Teresa; Webb, Anthony
• Is Part Of: Review of Black political economy. Volume 46:Issue 1(2019)
• Page Start: 22
• Page End: 37
• Publication Date: 2019-03
• Subjects: racial disparities -- retirement -- longevity -- Social Security; African Americans -- Economic conditions -- Periodicals; African Americans -- Employment -- Periodicals; 305.896073
• DOI: 10.1177/0034644619843529
• Languages: English
• ISSNs: 0034-6446

Abstract

Increasing the Social Security Full Retirement Age (FRA) adversely affects all workers because an increase is equivalent to an across-the-board cut in benefits. Raising the FRA leaves workers with two bad choices: working longer or living on reduced monthly benefits for the rest of their lives. Working longer further penalizes Blacks and low-wage workers because they are unlikely to live long enough to recoup payments foregone as a result of delayed claiming. Instead of cutting Social Security benefits, retirement policy makers should update and modernize the 401(k) and IRA systems to provide workers with better options.