Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203307
Authors: 
Maurer, Raimond
Mitchell, Olivia S.
Rogalla, Ralph
Schimetschek, Tatjana
Year of Publication: 
2017
Series/Report no.: 
SAFE Working Paper No. 164
Abstract: 
People who delay claiming Social Security receive higher lifelong benefits upon retirement. We survey individuals on their willingness to delay claiming later, if they could receive a lump sum in lieu of a higher annuity payment. Using a moment-matching approach, we calibrate a lifecycle model tracking observed claiming patterns under current rules and predict optimal claiming outcomes under the lump sum approach. Our model correctly predicts that early claimers under current rules would delay claiming most when offered actuarially fair lump sums, and for lump sums worth 87% as much, claiming ages would still be higher than at present.
Subjects: 
Annuity
delayed retirement
lifetime income
pension
early retirement
Social Security
JEL: 
G11
G22
H55
J26
J32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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