Later Retirement, Inequality in Old Age, and the Growing Gap in Longevity between Rich and Poor
The Social Security program is designed to redistribute income to workers with low lifetime earnings, but a growing longevity gap between the rich and poor is making that harder to accomplish, according to a new report from the Brookings Institution. Later Retirement, Inequality in Old Age, and the Growing Gap in Longevity between Rich and Poor finds that for Americans born in 1940, the difference in average life expectancy between those in the bottom and top 10 percent of the income distribution has grown to 12 years. This gap, combined with the greater likelihood of low-income Americans retiring early and foregoing paychecks as they age, means high-income retirees now receive a growing percentage of Social Security benefits, according to the report.