Business Economics and Public Policy Papers

Document Type

Journal Article

Date of this Version


Publication Source

The Journal of Risk and Insurance




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 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving

Embargo Date


Available for download on Wednesday, November 28, 2018



Date Posted: 27 November 2017