Transcript Disability and Retirement Among Aging Baby Boomers

Disability and Retirement Among Aging
Baby Boomers
By
Ralph E. Smith
Congressional Budget Office
December 2005
This paper was prepared for presentation at the 18th Annual Policy Research
Conference of the National Academy of Social Insurance, Washington, DC,
January 20, 2006. The views expressed are those of the author and should not
be interpreted as those of the Congressional Budget Office.
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Figure 1. Labor Force Participation Rates of Men and Women, by Age, 2005
(Percentage of Population)
100
Men
Women
80
60
Baby Boomers in 2005
40
20
SOURCE: Estimates based on data from the Current Population Survey for the first ten months of 2005.
65
62
59
41
35
0
2
Early Retirement on the Pocomoke River
3
Figure 2a. Men Not in Labor Force, by Age, 2005
(Percentage of Population)
60
40
Baby Boomers in 2005
Retired
20
Disabled
Other
0
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65
SOURCE: Estimates based on data from the Current Population Survey for the first ten months of 2005.
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Figure 2b. Women Not in Labor Force, by Age, 2005
(Percentage of Population)
60
Retired
40
Baby Boomers in 2005
Other
20
Disabled
0
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65
SOURCE: Estimates based on data from the Current Population Survey for the first ten months of 2005.
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Figure 3a. Labor Force Participation Rates of Men Ages 55 to 64, 1948 to 2004
(Percent)
100
Ages 55 to 59
80
Ages 55 to 64
60
Ages 60 to 61
40
Ages 62 to 64
20
0
1948
1952
1956
1960
1964
1968
1972
1976
SOURCE: Estimates based on data from the Bureau of Labor Statistics.
1980
1984
1988
1992
1996
2000
2004
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Table 1. Labor Force Status, Income, and Assets of Men and Women Ages 50 to
61 and the Main Reason for Nonparticipation, 2001
In Labor
Force
Not in Labor Force During 2001, By Reason at Any Time
Retired Disabled
Other *
Total During 2001
Men
Size of Group
Percentage of total
Percentage of total not in labor force
4
32
9
64
1
4
14
100
86
n.a.
Income and Assets
Median family income
30,000
Median net worth, including home equity 231,000
Median net worth, excluding home equity 89,000
20,000
19,000
2,000
**
**
**
23,000
61,000
8,000
62,000
148,000
55,000
24
**
21
3
Percentage poor
15
Source: Estimates based on data from the 2001 Survey of Income and Program Participation (SIPP).
**Not available because of the small sample size
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Table 1. Labor Force Status, Income, and Assets of Men and Women Ages 50 to 61
and the Main Reason for Nonparticipation, 2001
In Labor
Force
Not in Labor Force During 2001, By Reason at Any Time
Retired Disabled
Other *
Total During 2001
Women
Size of Group
Percentage of total
Percentage of total not in labor force
6
26
10
40
8
34
24
100
76
n.a.
Income and Assets
Median family income
34,000
Median net worth, including home equity 218,000
Median net worth, excluding home equity 90,000
19,000
14,000
1,000
43,000
120,000
27,000
30,000
82,000
13,000
54,000
132,000
42,000
34
10
21
3
Percentage poor
14
Source: Estimates based on data from the 2001 Survey of Income and Program Participation (SIPP).
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Table 3.
Sources of Income for Men Ages 50 to 61 Not Participating
in the Labor Force, 2001
Income Source
Percentage
Receiving Income
Average Annual Amount (Dollars)
from Designated For Recipients of Income
For All
Source
from Designated Source
in Group
Retired
All Available Sources*
Earnings of Spouse or
Other Family
Members
Pension
Own
Spouse
Social Security
Own
Spouse or Other
Family Members
Property
Supplemental Security
Income
Veterans’ Benefits
Workers
Compensation
99
33,800
33,400
38
26,100
9,800
73
10
19,300
6,500
14,100
700
4
7,100
300
11
82
8,100
5,400
900
4,400
5
5
7,800
10,800
400
500
2
6,200
100
Source: Estimates based on data from the 2001 Survey of Income and Program
Participation (SIPP).
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Table 3.
Sources of Income for Men Ages 50 to 61 Not Participating
in the Labor Force, 2001
Income Source
Percentage
Receiving Income
Average Annual Amount (Dollars)
from Designated For Recipients of Income
For All
Source
from Designated Source
in Group
Disabled
All Available Sources*
Earnings of Spouse or
Other Family
Members
Pension
Own
Spouse
Social Security
Own
Spouse or Other
Family Members
Property
Supplemental Security
Income
Veterans’ Benefits
Workers
Compensation
99
28,700
28,300
44
24,900
11,100
21
3
10,300
10,800
2,100
300
64
8,600
5,500
24
43
8,100
1,100
1,900
500
37
15
6,100
11,400
2,300
1,700
6
8,800
500
Source: Estimates based on data from the 2001 Survey of Income and Program
Participation (SIPP).
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Table 4.
Sources of Income for Women Ages 50 to 61 Not Participating
in the Labor Force, 2001
Income Source
Percentage
Receiving
Average Annual Amount (Dollars)
Income from
For Recipients of Income
For All
Designated Source from Designated Source
in Group
Retired
All Available Sources*
Earnings of Spouse or
Other Family Members
Pension
Own
Spouse
Social Security
Own
Spouse or other
family members
Property
Supplemental Security
Income
Veterans’ Benefits
100
44,300
44,300
46
46,400
21,400
35
44
13,600
16,900
4,800
7,500
15
4,000
600
34
82
10,500
5,200
3,600
4,300
6
6
5,800
7,200
400
500
Source: Estimates based on data from the 2001 Survey of Income and Program Participation
(SIPP).
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Table 4.
Sources of Income for Women Ages 50 to 61 Not Participating
in the Labor Force, 2001
Income Source
Percentage
Receiving
Average Annual Amount (Dollars)
Income from
For Recipients of Income
For All
Designated Source from Designated Source
in Group
Disabled
All Available Sources*
Earnings of Spouse or
Other Family Members
Pension
Own
Spouse
Social Security
Own
Spouse or other
family members
Property
Supplemental Security
Income
Veterans’ Benefits
Workers Compensation
99
25,900
25,800
48
26,100
12,500
9
13
7,700
11,600
700
1,500
58
5,800
3,400
30
38
8,100
1,900
2,400
700
44
4
4
5,000
5,600
6,000
2,200
200
300
Source: Estimates based on data from the 2001 Survey of Income and Program Participation
(SIPP).
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Table 5. Poverty Rates of Labor Force Participants and Nonparticipants
Ages 50 to 61, 2001 (Percent)
Not in Labor Force During 2001and Reason
Retired
Disabled
Other*
Total
In Labor Force
at Any Time
During 2001
Based on Cash Income
Men
Women
15
14
24
34
**
10
21
21
3
3
Based on Cash Income Plus
Annuity Value of Net Worth
(Excluding Home Equity)
Men
Women
11
11
24
33
**
9
20
19
3
3
Based on Cash Income Plus
Annuity Value of Net Worth
(Including Home Equity)
Men
Women
5
9
23
31
**
8
17
17
2
3
Source: Estimates based on data from the 2001 Survey of Income and Program Participation (SIPP).
**Not available because of the small sample size
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Table 6. Health Insurance Coverage Among Labor Force Participants and
Nonparticipants Ages 50 to 61, 2001 (Percent)
Source of Coverage
Not in Labor Force During 2001 and Reason
Retired
Disabled
Other*
Total
In Labor Force at
Any Time
During 2001
Men
Employer-Sponsored
Medicare, Medicaid
Other Coverage
Uninsured
76
4
11
9
100
33
52
4
11
100
**
**
**
**
47
35
7
11
100
82
1
6
11
100
52
24
10
14
100
82
2
7
9
100
Women
Employer-Sponsored
Medicare, Medicaid
Other Coverage
Uninsured
73
4
14
9
100
27
53
7
13
100
64
6
11
19
100
Source: Estimates based on data from the 2001 Survey of Income and Program Participation (SIPP).
**Not available because of the small sample size.
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Table 7. Characteristics of Men Ages 50 to 61, 2001 (Percent)
In Labor Force at
Not in Labor Force During 2001 and Reason
Any Time
*
Retired
Disabled
Other
Total During 2001
Education
Did not finish high school
High school diploma
Some college
College graduate
11
33
26
30
100
34
37
24
5
100
**
**
**
**
26
35
25
13
100
11
26
28
34
100
Marital Status
Married
Divorced, separated, widowed
Never married
70
23
8
49
36
15
**
**
**
55
31
14
74
20
5
Origin
Native born
Foreign born
96
4
91
9
**
**
93
7
89
11
Age Last Worked
50 or later
Before 50
Never employed
84
15
1
32
64
4
**
**
**
49
48
3
100
0
0
Disability Status
Work-limiting disability
None
28
72
100
0
**
**
25
75
16
84
Source: Estimates based on data from the 2001 Survey of Income and Program Participation (SIPP).
** Not available because of the small size of the sample.
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Table 8. Characteristics of Women Ages 50 to 61, 2001 (Percent)
In Labor Force at
Not in Labor Force During 2001 and Reason
Any Time
*
Retired
Disabled
Other
Total
During 2001
Education
Did not finish high school
High school diploma
Some college
College graduate
15
32
24
29
100
40
34
22
4
100
26
34
24
15
100
29
34
23
14
100
8
33
31
28
100
Marital Status
Married
Divorced, separated, widowed
Never married
75
19
6
46
46
8
83
13
3
66
28
6
65
29
7
Origin
Native born
Foreign born
88
12
91
9
81
19
87
13
90
10
Age Last Worked
50 or later
Before 50
Never employed
60
32
8
25
64
11
29
55
16
35
53
12
100
0
0
Disability Status
Work-limiting disability
None
28
72
99
1
26
74
55
45
15
85
Source: Estimates based on data from the 2001 Survey of Income and Program Participation (SIPP).
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