Penn Wharton Public Policy Initiative

Publication Date

11-2015

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Volume

3

Number

9

Document Type

Brief

Summary

New research reframes the debate about Social Security solvency and moves away from questions of who should bear the greater burden of fixing the system by offering a lump sum payment model as a way to encourage people to delay claiming their Social Security benefits. Under one of the lump sum alternatives presented in this brief, survey participants indicated a willingness to delay claiming Social Security by up to eight months, on average, compared to the status quo, and to continue working for four of them. Delayed claiming would mean additional months or years of Social Security payroll tax contributions, which could modestly improve the program’s solvency.

License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

Keywords

social security, budget, payroll, tax

The Potential Effect of Offering Lump Sums in the Social Security Program

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