What is the insurance value of Social Security by race and education?

Wettstein, Gal, Karolos Arapakis, and Yimeng Yin. “What is the insurance value of Social Security by race and education?”. Issue in Brief 24-3, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, January 2024. http://hdl.handle.net/2345/bc-ir:109887.
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Abstract

The briefs key findings are: (1) The value of Social Security's retirement program to individuals is often measured by comparing expected benefits to payroll taxes. (2) But this approach ignores the program's insurance value, which is larger for those with more uncertain lifespans. (3) The analysis estimates the insurance value using a lifecycle model for stylized households by race, education, and marital status. (4) Accounting for insurance value, the results show that the program is significantly more valuable than lifetime taxes for almost all household types. (5) Social Security's insurance component also increases racial equity, because lifespans vary more among Black individuals.

Title
What is the insurance value of Social Security by race and education?
Author
Wettstein, Gal
Arapakis, Karolos
Yin, Yimeng
Center
Center for Retirement Research
Genre
report
Date Issued
January 2024
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
24-3
Persistent Link
http://hdl.handle.net/2345/bc-ir:109887
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Racial Disparities
Social Security

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