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During the last two decades, income transfer programs aimed at improving the economic circumstances of the elderly have experienced substantial expansion. The mean real size of the monthly Social Security retirement benefit paid to retired workers increased by 47 percent between 1970 and 1985 (U.S. Bureau of the Census, 1986a). Tax-advantage private pension systems have expanded rapidly. By 1980, 21 percent of aged households received some private pension income, up from 12 percent in 1967 (Upp, 1983). Despite the extensive and growing cost of public and private benefits for the aged, however there has been no consensus on a "measuring stick" with which to assess progress in improving the elderly's economic circumstances.
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