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Abstract We build a general equilibrium model with endogenous saving, labor force participation, work hours and Social Security benefit claiming, in which overlapping generations of individuals face income, survival, and health expenditure risks in incomplete markets. We use the model to study the impact of three Social Security reforms: reductions in benefits and payroll taxes,…
The brief’s key findings are: Early Baby Boomers were hit hard by the financial crisis. But, over their careers, markets have treated them well: they have enjoyed 9-percent returns on equities; and they have fared much better than either Late Boomers or Gen Xers. Gen Xers have faced the worst investment climate, but Late Boomers…
