How the Growing Gap in Life Expectancy May Affect Retirement Benefits and Reforms

摘要: Older Americans have experienced dramatic gains in life expectancy recent decades, but an emerging literature reveals that these are accumulating mostly to those at the top of income distribution. We explore how growing inequality affects lifetime benefits from Social Security, Medicare, and other programs this phenomenon interacts with possible program reforms. first project age 50 for males two highest quintiles will rise by 7 8 years between 1930 1960 birth cohorts, lowest experience little no increase over time period. This divergence cause gap average received men widen $130,000 (in $2009) Finally we simulate effect Security reforms such as raising normal retirement changing benefit formula see whether they mitigate or enhance reduced progressivity resulting widening expectancy.