Business Economics and Public Policy Papers

Document Type

Journal Article

Date of this Version

11-28-2016

Publication Source

The Journal of Risk and Insurance

DOI

10.1111/jori.12173

Abstract

This article investigates whether exchanging Social Security delayed retirement credits, currently paid as increases in lifelong benefits, for a lump sum would induce later claiming and additional work. We show that people would voluntarily claim about 6 months later if the lump sum were paid for claiming after the early retirement age, and about 8 months 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. Those who would currently claim at the youngest ages are most responsive to the lump sum offer.

Copyright/Permission Statement

This is the peer reviewed version of the following article: Maurer, R., Mitchell, O. S., Rogalla, R. and Schimetschek, T. (2017), WILL THEY TAKE THE MONEY AND WORK PEOPLE'S WILLINGNESSTO DELAY CLAIMING SOCIALSECURITY BENEFITS FOR a LUMP SUM. Journal Risk and Insurance., which has been published in final form at http://dx.doi.org/10.1111/jori.12173. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms

Embargo Date

11-28-2018

Available for download on Wednesday, November 28, 2018

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Date Posted: 27 November 2017