Evaluating the Initial Impact of Eliminating the Retirement Earnings Test

by Jae G. Song
Social Security Bulletin, Vol. 65 No. 1, 2003/2004
Table equivalent for Chart 1. Distribution of earnings for individuals aged 62–64, 65–69, and 70–72 in 1998, 1999, and 2000
Earnings interval relative to threshold (in thousands of dollars) 1998 1999 2000 a
Aged 62–64 Aged 65–69 Aged 70–72 Aged 62–64 Aged 65–69 Aged 70–72 Aged 62–64 Aged 65–69 Aged 70–72
-5 to -4 4.31 2.99 3.13 3.34 3.63 3.15 3.04 3.09 1.52
-4 to -3 2.43 3.13 2.43 2.79 3.23 2.21 2.49 2.57 3.03
-3 to -2 2.16 4.08 2.08 1.39 2.82 1.26 1.93 2.32 3.03
-2 to -1 1.35 2.31 2.43 2.51 2.55 2.52 0.83 2.06 1.21
-1 to threshold 1.35 3.81 1.39 0.56 4.30 2.21 2.21 1.80 1.52
Threshold to +1 0.81 2.31 1.74 0.56 1.75 1.58 0.28 2.70 0.61
+1 to +2 0.81 1.36 1.39 0.56 1.21 0.32 0.55 1.54 0.30
+2 to + 3 0.00 1.22 0.69 0.56 0.94 1.58 1.10 1.80 0.91
+3 to +4 1.89 0.82 1.04 0.56 1.34 0.63 0.28 2.32 0.30
+4 to +5 0.81 0.54 0.35 0.56 0.27 0.63 0.28 0.77 1.82
SOURCE: Author's tabulations using the 1996 Survey of Income and Program Participation matched with the Social Security Administration's Master Beneficiary Record and Supplemental Earnings Record files.
a. For illustrative purposes, this analysis uses $16,500 for the retirement earnings test threshold in 2000.