Will They Take the Money and Work? An Empirical Analysis of People’s Willingness to Delay Claiming Social Security Benefits for a Lump Sum

Raimond Maurer, Olivia Mitchell, Ralph Rogalla and Tatjana Schimetschek
Additional contact information
Raimond Maurer: Goethe University of Frankfurt
Ralph Rogalla: Goethe University of Frankfurt
Tatjana Schimetschek: Goethe University of Frankfurt

Working Papers from University of Michigan, Michigan Retirement Research Center

Abstract: 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

Pages: 39 pages
Date: 2014-09
New Economics Papers: this item is included in nep-age and nep-lab
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Related works:
Working Paper: Will they take the money and work? An empirical analysis of people's willingness to delay claiming social security benefits for a lump sum (2015)
Working Paper: Will They Take the Money and Work? An Empirical Analysis of People's Willingness to Delay Claiming Social Security Benefits for a Lump Sum (2014)
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