Abstract #301863

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JSM 2003 Abstract #301863
Activity Number: 340
Type: Contributed
Date/Time: Wednesday, August 6, 2003 : 8:30 AM to 10:20 AM
Sponsor: Section on Government Statistics
Abstract - #301863
Title: Personal Retirement Accounts and Social Security Reform: The Economic Circumstances of the Disabled Population
Author(s): Michael V. Leonesio*+ and Linda A. Del Bene
Companies: Social Security Administration and Social Security Administration
Address: 500 E St. SW, Washington, DC, 20254-0001,
Keywords: disability ; Social Security ; personal retirement accounts ; matched data
Abstract:

Demographic trends will require that changes be made to Social Security if the program is to remain solvent over the long term. Many proposals call for replacing part of the traditional Social Security benefit with Personal Retirement Accounts (PRA), in which the investment accounts are owned and managed by workers. One concern is how to structure PRAs for workers who become disabled and cannot contribute to their accounts over a full working career. We use data from the 1992 and 1993 Surveys of Income and Program Participation matched to Social Security administrative data to examine the economic circumstances of the older disabled population. We simulate how PRAs might work in the case of disabled workers and explore ways to augment their lifetime PRA accumulations.

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