The Impact of the Increase in the Social Security’s Full Retirement Age on Cognition

• In Event: Financial Security and Well-being in Retirement

Abstract

In 1983, the US Social Security enacted a reform that gradually raised the Full Retirement Age (FRA) from 65 to 67 over a 22-year period. While prior research has shown that this reform delayed the claiming of Social Security retirement benefits and increased labor force participation, relatively few studies have examined its broader well-being effects, particularly on cognitive functioning. Using data from the Health and Retirement Study (HRS), this paper investigates the causal impact of the FRA increase on a wide range of cognitive and memory-related outcomes among men and women in the US. Results indicate that the 1983 Social Security Amendments improved several aspects of cognitive functioning, particularly among men. There is also evidence of a decline in proxy interviews due to physical and cognitive limitations for both genders and a higher likelihood of self-reported memory improvement among women. Although cognitive effects do not consistently vary by job-related physical or mental demands, there are indications that men in less physically demanding jobs may experience greater gains in episodic memory. Finally, the cognitive benefits observed during the 60s persist through age 75, although rates of cognitive impairment remain unchanged in later years.

Author

• Halim Yoon, Syracuse University
  Presenting Author