Late-career unemployment shocks, pension outcomes and unemployment insurance

• 成果类型: Article
• 署名作者: Mahmoudi, Samir Elsadek
• 署名单位: University System of Georgia; Georgia State University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2022.104751
• 发表日期: 2023
• 关键词: Retirement savings; private pensions; Social Security; unemployment insurance

摘要

In response to unemployment shocks, older workers deplete their 401(k)s, particularly after the waiving of the early withdrawal penalty on unemployment-motivated withdrawals at age 55. This paper shows that unemployment insurance keeps older workers from depleting their 401(k) assets following job losses. Unemployment insurance also incentivizes older unemployed workers to delay claiming their Social Security benefits beyond the earliest age of eligibility, 62. Overall, unemployment insurance enhances the retirement income of the individuals having a history of late-career layoffs by helping them preserve their 401(k) assets, maintain the return on these assets and opt for a higher stream of Social Security benefits. (c) 2022 Elsevier B.V. All rights reserved.