Table 9.

Policy Simulations - Bad Health (1 standard deviation or more below average)

	Baseline	Policy 1 Remove SS ERB	Policy 2 SS NRA to 67	Policy 3 Eliminate DI	Policy 4 25% Decrease DI Benefits	Policy 5 25% Decrease SS Benefits	Policy 6 25% Decrease DI & SS Benefits
Pooled Ages
LF Exit (N+A)	0.400	0.396	0.399	0.363	0.390	0.399	0.389
Non-Work (N)	0.296	0.283	0.283	0.363	0.307	0.286	0.297
Apply DI (A)	0.104	0.112	0.117	0**	0.084	0.113	0.092
AGE=55
LF Exit (N+A)	0.405	0.406	0.405	0.359	0.393	0.406	0.394
Non-Work (N)	0.277	0.272	0.275	0.359	0.289	0.273	0.285
Apply DI (A)	0.127	0.133	0.130	0**	0.104	0.133	0.109
AGE=60
LF Exit (N+A)	0.384	0.381	0.383	0.366	0.380	0.383	0.377
Non-Work (N)	0.324	0.308	0.317	0.366	0.332	0.315	0.322
Apply DI (A)	0.060	0.074	0.066	0**	0.048	0.068	0.055
AGE=62
LF Exit (N+A)	0.451	0.423	0.444	0.425	0.444	0.444	0.436
Non-Work (N)	0.351	0.310	0.333	0.425	0.367	0.326	0.340
Apply DI (A)	0.100	0.114	0.111	0**	0.078	0.118	0.096
AGE=64
LF Exit (N+A)	0.481	0.455	0.472	0.446	0.473	0.473	0.463
Non-Work (N)	0.301	0.296	0.274	0.446	0.329	0.261	0.290
Apply DI (A)	0.180	0.159	0.198	0**	0.144	0.212	0.173
AGE=65
LF Exit (N+A)	0.474	0.465	0.489	0.457	0.474	0.461	0.456
Non-Work (N)	0.474	0.465	0.307	0.457	0.474	0.461	0.456
Apply DI (A)	0*	0*	0.181	0*	0*	0*	0*

^*person cannot apply for Disability Insurance at age 65 or older except in Policy 2.

^**policy involves removing Disability Insurance program.

Policy 1 involves removing all SS benefits before age 65.

Policy 2 involves changing the normal retirement age from 65 to 67.

Policy 3 involves removing the DI program.

Policy 4 involves a 25% decrease in DI benefits without changing SS Retirement benefits.

Policy 5 involves a 25% decrease in SS Retirement benefits without changing DI benefits.

Policy 6 involves ad 25% reduction in both SS Retirement and DI benefits.