Longevity Policy: Facing Up to Longevity Issues Affecting Social Security, Pensions, and Older Workers

Index

151 Index The italic letters n and t following a page number indicate that the subject information of the heading is within a note or table, respectively, on that page. Double italics indicate multiple but consecutive elements. Absenteeism, workforce, 28 Actuarial issues benefit adjustments among, 78, 81, 84, 85, 131 benefit deficits among, 2, 4, 6 life expectancy among, 6, 12n2, 74, 90 phased retirement survey among, 33–34 ADEA. See Age Discrimination in Employment Act African Americans. See Black Americans Age, 4, 23 advanced, and poverty risk, 10, 88–89 life expectancy and, 6, 12n2, 69n2 normal, for full Social Security benefits, 6–7, 9t, 63, 66, 71, 85n2 Age Discrimination in Employment Act (ADEA), flexible employment barriers in, 32 Aging. See Baby boomers; Older workers AIG (firm), bankruptcy of, 100, 112 AIME. See Average Indexed Monthly Earnings Annuities, 16, 54 deferred and price-indexed, as longevity insurance, 87, 89, 90, 92, 99–100 401(k) plan account balances and, 8, 9t, 11, 12, 46, 105–106, 129 insurance for, 112, 116, 132 policies to encourage, 106–112 policy recommendations about, 115– 116, 132 providers of, and risk, 122–124, 123t, 126n1 traditional defined benefit plans and, 105, 115 Annuity policy, 106–112, 115–116 default options, 108–110 incentives vs. penalties, 111–112 mandatory vs. voluntary, 106–108 spousal consent, 110–111, 132 Appalachia, life expectancy of lowincome females in, 19 Asian Americans, female life expectancy of, 19 Assets insurance against outliving, 106–107 risk of outliving, 105 spending down of non–Social Security, 7, 10, 91–92 Australia, retirement age in, 81, 82, 121 Austria, pensionable age for men in, 81 Automatic balancing mechanism (Sweden), assuring social security solvency with, 55, 69n4 Average Indexed Monthly Earnings (AIME), life expectancy and, 83–84 Baby boomers aging of, and costs, 1, 5, 61 health status of, and obesity, 21–22 Bankruptcy, 89, 100 Belgium, retirement age in, 121 Benefit formulas, 8, 69n3 changes in, to offset adverse consequences, 65, 71 eligibility tests in, 87, 95, 102, 132 German experience with, 57–58, 70n7 Social Security and, 17, 67, 70n10 Benefit receipt framing of, 114–115 U.S. pension law and, 124–125 Benefit sustainability, 41, 57 152 Turner Bergen County, New Jersey, Asian female life expectancy in, 19 Black Americans, 24t comparable early retirement ages of, 75–76, 76t effect of raised retirement age on, 19, 77 health conditions of, 20, 21–22, 21t, 23 life expectancy and, 3, 18–19, 19t, 65, 76t, 99 non-Hispanic, and health, 22, 25, 26t BMI. See Body mass index BMW (firm), longevity risk and, 124 Body mass index (BMI), calculation and consequences of, 27, 38n1 Bridge jobs, defined, 31 Canada, changes in contributions and benefits in, 61t Canada Pension Plan (CPP), 61–62 Cardiovascular diseases, 22, 25, 26 CBO. See U.S. Congressional Budget Office Child care credits, pensionable age with, 82 Chile, annuity combination package in, 112 Civil servants. See Government employees Civil Service Retirement System, spousal consent in, 110 Consumer Price Index (CPI), changes in, 54, 60–61 CPP. See Canada Pension Plan Cross-sectional equity, 76–77 DB plans. See Defined benefit (DB) plans Death risk, 18 See also Mortality Defined benefit (DB) plans, 7–8, 117– 126 adjusting, to offset life-expectancy increases, 119–121 effect of life-expectancy increases on, 117–119 encourage provision of, 9t, 11, 12, 129 new type of, 7–8, 11, 122–124, 125– 126, 133 phased retirement and, 32–33 retirement age in, 124–125 traditional formula for, 8, 117, 133 types of risk in, 7–8, 122–123, 123t, 125, 133 Defined contribution plans, 7, 11, 105–116 affecting behavior for choice in, 113–115 annuities in, 46, 100 annuity encouragement for, 106–108, 110–112, 129, 132 growth of, 92, 105, 109 types of risk in, 105, 123, 123t Denmark, social security program in, 51, 68, 82 DI. See Disability Insurance Diabetes, 22, 25, 27–28 Disability challenges, 24, 50, 65, 77 health and, 17, 22–23, 27 Disability Insurance (DI), 2, 27, 35 Early eligibility age. See Early entitlement age Early entitlement age, 72, 78, 85n4 Education, 20, 22 increased, and health of older workers, 23–24 low level of, and smoking, 24–25 physical effort required on job and, 29–30 preparing workforce for hard choices with, 113–115 Employee Retirement Income Security Act (ERISA), 120–121 annuitization and, 126...