Will they take the money and work? An empirical analysis of people's willingness to delay claiming social security benefits for a lump sum

  • This paper investigates whether exchanging the Social Security delayed retirement credit, currently paid as an increase in lifetime annuity benefits, for a lump sum would induce later claiming and additional work. We show that people would voluntarily claim about half a year later if the lump sum were paid for claiming any time after the Early Retirement Age, and about two-thirds of a year later if the lump sum were paid only for those claiming after their Full Retirement Age. Overall, people will work one-third to one-half of the additional months, compared to the status quo. Those who would currently claim at the youngest ages are likely to be most responsive to the offer of a lump sum benefit.

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Metadaten
Author:Raimond MaurerORCiDGND, Olivia S. MitchellORCiDGND, Ralph RogallaGND, Tatjana Schimetschek
URN:urn:nbn:de:hebis:30:3-371013
URL:http://ssrn.com/abstract=2567341
DOI:https://doi.org/10.2139/ssrn.2567341
Parent Title (English):SAFE working paper series ; No. 84
Series (Serial Number):SAFE working paper (84)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Date of Publication (online):2015/02/20
Date of first Publication:2015/02/20
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2015/03/10
Tag:Annuity; Social Security; delayed retirement; lifetime income; lump sum; pension
Page Number:42
HeBIS-PPN:357671422
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht