The effects of subjective survival on retirement and Social Security claiming

Michael D. Hurd, James P. Smith and Julie Zissimopoulos ()
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Michael D. Hurd: Rand Corporation, Santa Monica, USA, Postal: Rand Corporation, Santa Monica, USA
James P. Smith: Rand Corporation, Santa Monica, USA, Postal: Rand Corporation, Santa Monica, USA

Journal of Applied Econometrics, 2004, vol. 19, issue 6, 761-775

Abstract: According to the life-cycle model, mortality risk will influence both retirement and the desire to annuitize wealth. We estimate the effect of subjective survival probabilities on retirement and on the claiming of Social Security benefits because delayed claiming is equivalent to the purchase of additional Social Security annuities. We find that those with very low subjective probabilities of survival retire earlier and claim earlier than those with higher subjective probabilities, but the effects are not large. The great majority of workers claim as soon as they are eligible. Copyright © 2004 John Wiley & Sons, Ltd.

Date: 2004
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Related works:
Working Paper: The Effects of Subjective Survival on Retirements and Social Security Claiming (2003)
Working Paper: The Effects of Subjective Survival on Retirement and Social Security Claiming (2002)
Working Paper: The Effects of Subjective Survival on Retirement and Social Security Claiming (2002)
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DOI: 10.1002/jae.752

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