Tag: cost of living
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The formula for calculating Social Security benefits recognizes that it’s more difficult for lower-paid workers to afford retirement. Their future retirement benefits will replace a higher percentage of their earnings than, say, a corporate executive will receive. But workers in similar jobs who live in expensive coastal cities are at a disadvantage: steep housing costs…
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And do people respond by saving more, retiring later, or moving? My colleagues and I have always had this notion that, because wage levels vary across the country, workers in high-cost areas would receive lower replacement rates under Social Security’s progressive benefit formula than otherwise identical workers in low-cost areas. This variation in replacement rates…