Revisiting the 1983 Social Security Reforms, 25 Years Later

Abstract

The authors examined changes in the ages at which people claim Social Security retirement benefits in response to the 1983 Social Security reforms, which gradually increase the full retirement age (FRA). Data came from the 1% sample of Social Security administrative data that contains longitudinal earnings and benefit claim information. The results show that the response to the gradual increase in the FRA has occurred not only among those who are close to the FRA but also among those who are close to the early retirement age. An increase in the full retirement age of 12 months is estimated to decrease the probability of claiming benefits at age 62 by about eight percentage points.