Tuesday, June 14, 2011

Economist Argues Eliminating Earnings Test on Social Security at Age 62 Will Help Retain Older Workers

The Journal of Applied Business Research has published an article by Robert E. Pritchard, professor emeritus of finance at Rowan University, which suggests that eliminating the existing earned income restrictions imposed on Social Security benefits received at age 62 would provide an incentive for people to worker longer, thereby increasing the total economic output and helping to stimulate employment growth.

In his article--"Creating Social Security Incentives for Older Workers to Remain In the Workforce," Pritchard argues that such a change would mean, among other things that, workers would realize a significant increase in income when they continue to work full-time and collect Social Security benefits, giving them an incentive to continue working. Furthermore, he says that once older workers become accustomed to collecting Social Security benefits while still working full-time, they will feel a strong incentive to continue working full-time.

Source: National Center for Policy Analysis Daily Policy Digest (June 14, 2011)

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