Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107412
Authors: 
Maurer, Raimond
Mitchell, Olivia S.
Rogalla, Ralph
Schimetschek, Tatjana
Year of Publication: 
2015
Series/Report no.: 
SAFE Working Paper Series 84
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.
Subjects: 
annuity
lump sum
social security
delayed retirement
lifetime income
pension
JEL: 
D04
D01
D12
D14
G22
H55
Document Type: 
Working Paper

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