Research Looks to See How Hidden Costs of Social Security Claiming Takes Toll on Widows

Andrew J Schappert — Wed, 13 Nov 2024 15:52:08 +0000

Research Looks to See How Hidden Costs of Social Security Claiming Takes Toll on Widows Andrew J Schappert Wed, 11/13/2024 - 10:52

The timing of filing for Social Security benefits is one of the most important decisions senior Americans must make. But few think about the implications filing early or late in life has on widowed spouses, a segment of society that represents nearly 12 million women, according U.S. Census data.

Sita Slavov: ‘I would hope that this study can help inform families, financial advisors, and policymakers about this important aspect of retirement security.’ Photo by Ron Aira/Creative Services

Some two million of those widows live below the poverty line.

In a new and detailed study of the topic, Sita Nataraj Slavov, a professor of public policy at the Schar School of Policy and Government at ��AV, is diving into a critical issue facing America’s aging population: How Social Security claiming decisions affect the financial security of widows.

It’s important to know that the later in life an individual files for Social Security—between 62 and 70—the larger the monthly benefit. Prior research, she said, has shown that many, if not most, people can increase the lifetime value of their benefits by delaying claiming.

Her new research focuses on the choices made by primary earners as to when to claim Social Security benefits and how these decisions shape the financial landscape for their surviving spouses in later life. A key component of her analysis is to assess how the timing of a deceased spouse's Social Security claim influences these financial outcomes after widowhood.

“If the primary earner passes away first, the secondary earner receives a survivor benefit that’s equal to the primary earner’s benefit, including the gains from delay,” she said. “In other words, by delaying, primary earners can pass on a higher survivor benefit to their widowed spouses. So, the original claiming age of the primary earner in a marriage has major implications for the well-being of the secondary earner, if the secondary earner is widowed.”

Using advanced econometric techniques, Slavov is employing difference-in-differences and event study models to trace the shifts in income, labor participation, wealth, and poverty risk that widowed secondary earners experience. She plans to examine how these shifts may be larger or smaller depending on the deceased spouse’s claiming age.

“Social Security is the largest source of retirement income for most Americans,” she said. “Among those aged 65 and over, widowed women have a higher poverty rate than others. The poverty rate in this group is around 16 percent, compared to around 10 percent for all individuals 65 and older.”

Many of these widows, she said, “are secondary earners who are receiving survivor benefits. I would hope that this study can help inform families, financial advisors, and policymakers about this important aspect of retirement security.”

In This Story

Sita Nataraj Slavov

Request Schar School program information

Learn more about the Schar School

Topics

Research

Schar School of Policy and Government

Schar School Featured Stories

Schar School News for November 2024

Research

Aging

College of Health and Human Services and ServiceSource Establish a Center on Aging with a Focus on Healthy Aging and Workforce Development

Mary Cunningham — Wed, 18 May 2022 20:55:33 +0000

College of Health and Human Services and ServiceSource Establish a Center on Aging with a Focus on Healthy Aging and Workforce Development Mary Cunningham Wed, 05/18/2022 - 16:55

In This Story

Dr. Cathy Tompkins

Healthy aging is more important than ever in the U.S. as everyone in the Baby Boomer generation nears retirement age.

Post-doctoral student Hyun Kang, Associate Dean of Faculty and Staff Affairs and Professor Cathy Tompkins, Assistant Professor Michelle Hand, and Chair of the Department of Social Work Emily Ihara at the opening of the Wellness Center for Older Adults.

College of Health and Human Services and ServiceSource, Inc. (SSI) have established a Northern Virginia Center on Aging, which will be recognized as a satellite center with the Virginia Center on Aging (VCoA). The center will provide services, programs, and activities for older adults and workforce development and continuing education for health care professionals who support older adults. Faculty and students will be actively involved and are excited for this new opportunity.

The Center on Aging will expand the VCoA’s mission of being an interdisciplinary study, research, information, and resource facility for the Commonwealth of Virginia utilizing the full capabilities of faculty, staff, libraries, laboratories, and clinics for the benefit of older Virginians and the expansion of knowledge pertaining to older adults and aging in general. VCoA is a statewide agency created by the Virginia General Assembly.

“Healthy aging is now more important than ever as our over-65 and over-85 populations continue to grow in the coming decades,” said Associate Dean of Faculty and Staff Affairs and Professor Cathy Tompkins. “This collaborative program will help prepare the current and future geriatric workforce to optimize opportunities to maintain and improve physical and mental health, independence, and quality of life throughout a person’s life.”

By 2030, every person in the Baby Boomer generation will be 65 or older. With this generation being larger than generations before it, more resources are necessary to support the population.

The new center will provide workforce training to students across the College’s departments through practicums, internships, and other experiential learning opportunities on how to effectively work with older adults. Additionally, the Center will partner with other community organizations to provide continuing education and training for frontline workers and licensed professionals. College faculty will have opportunities to evaluate current interventions implemented by SSI staff and community partners.

The Northern Virginia Center on Aging will be housed at the new Wellness Center for Older Adults (WCOA), which is less than four miles from Mason’s campus.

The College is home to the Department of Social Work and leads research and workforce development initiatives focused on healthy aging. Other departments actively involved in the new Northern Virginia Center on Aging include the School of Nursing and the Department of Nutrition and Food Studies.

SSI’s mission is to facilitate services, resources, and partnerships to support people with disabilities and it offers a wide range of services to serve the community, including operating the WCOA.

Other WCOA community partners supporting the Center include AARP Virginia, The Alzheimer’s Association American Health Care Professionals, the Osher Lifelong Learning Institute, INOVA Community Health, Insight Memory Care Center, Northern Virginia Community College, Shenandoah University, the Shepherd’s Center, and the Parkinson Social Network.

About Mason

��AV, Virginia’s largest public research university, enrolls 39,000 students from 130 countries and all 50 states. Located near Washington, D.C., Mason has grown rapidly over the last half-century and is recognized for its innovation and entrepreneurship, remarkable diversity, and commitment to accessibility. In 2022, Mason celebrates 50 years as an independent institution. Learn more at http://www.gmu.edu.

About the College of Health and Human Services

The College of Health and Human Services prepares students to become leaders and to shape the public's health through academic excellence, research of consequence, community outreach, and interprofessional clinical practice. The College enrolls more than 1,900 undergraduate and 1,300 graduate students in its nationally-recognized offerings, including 6 undergraduate degrees, 13 graduate degrees, and 6 certificate programs. The college is transitioning to a college of public health in the near future. For more information, visit https://chhs.gmu.edu/.