On the Optimality of Deferred Public Annuities

Liran Einav and Amy Finkelstein

No 34384, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What is the optimal path of Social Security benefits for an individual who has retired with a stock of wealth, faces stochastic mortality, and has no access to annuities and no preferences for bequests? It is a deferred annuity in which the government annuity pays out zero for some periods and a constant amount after that. The optimal length of the deferral period is increasing in the retiree's initial wealth and in their survival probability.

JEL-codes: H55 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-age and nep-hea
Note: AG PE
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