Disparities in Social Security Replacement Ratios
Background and Purpose
Social Security benefits in the U.S. are facially race-neutral. Two people the same age and with the same earnings history and retirement age will receive the same Social Security benefits. However, employment patterns—including but not limited to ages at which employment begins, employment that is not reflected in Social Security, periods of unemployment, and retirement age—and wage levels are known to differ across the population. How do those differences affect Social Security benefit replacement ratios by race, ethnicity, gender and socioeconomic factors other than income alone?
Research Objective and Deliverables
This research would provide responses to the following questions, quantified by various dimensions of diversity, including gender or sex, race, ethnicity, and socioeconomic factors within a number of income levels:
- How do employment patterns and wage levels differ, and how do the differences impact Social Security benefits and replacement ratios?
- Over time, how have differences in employment patterns, wage levels, and resulting Social Security replacement ratios changed?
Target Audience and Impact
This research would provide facts that inform policymakers about the impact on Social Security benefits of uneven distributions of employment patterns across subpopulations reflecting various dimensions of diversity.
Estimated Cost
Approximately $40,000–$100,000, depending on the level of detail and span of time studied.