TY  - UNPD
A1  - Maurer, Raimond
A1  - Mitchell, Olivia S.
A1  - Rogalla, Ralph
A1  - Schimetschek, Tatjana
T1  - Optimal social security claiming behavior under Lump Sum incentives: theory and evidence
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 629
N2  - Many Americans claim Social Security benefits early, though this leaves them with lower benefits throughout retirement. We build a lifecycle model that closely tracks claiming patterns under current rules, and we use it to predict claiming delays if, by delaying benefits, people received a lump sum instead of an annuity. We predict that current early claimers would defer claiming by a year given actuarially fair lump sums, and the predictions conform with respondents’ answers to a strategic survey about the lump sum. In other words, such a reform could provide an avenue for encouraging delayed retirement without benefit cuts or tax increases. Moreover, many people would still defer claiming even for smaller lump sums.
T3  - CFS working paper series - 629 
KW  - Retirement
KW  - annuity
KW  - delayed claiming
KW  - pension
KW  - early retirement
KW  - Social Security
Y1  - 2019
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/51531
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-515311
UR  - https://ssrn.com/abstract=3476315
N1  - ©2019 Maurer, Mitchell, Rogalla, & Schimetschek. All rights reserved.
IS  - May 4, 2019
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -