Center for Financial Studies (CFS)
Refine
Year of publication
- 2015 (115) (remove)
Document Type
- Working Paper (108)
- Part of Periodical (6)
- Article (1)
Has Fulltext
- yes (115)
Is part of the Bibliography
- no (115) (remove)
Keywords
- Währungsunion (4)
- systemic risk (4)
- Solvency II (3)
- insurance (3)
- Banking Union (2)
- Basel III (2)
- Fiscal Union (2)
- Fiskalunion (2)
- Heterogeneous Agents (2)
- Income and Wealth Inequality (2)
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.