Calculating expected Social Security benefits by race, education and claiming age

Sanzenbacher, Geoffrey T., and Jorge D. Ramos-Mercado. “Calculating expected Social Security benefits by race, education and claiming age”. CRR WP 2016-14, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2016. http://hdl.handle.net/2345/bc-ir:107225.
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Abstract

This paper found that: (1) Non-Hispanic men, both black and white, who do not hold a college degree maximize their EPV of benefits by claiming before the full retirement age, especially using a 3-percent interest rate in the EPV calculation. (2) On the other hand, white men with a college degree and white women with at least a high school degree maximize the EPV of their benefits when claiming after their FRAs. (3) Within some groups, delayed claiming can result in a substantially higher EPV than early claiming, given today's low interest rates. For white female college graduates, the maximum EPV occurs at age 70 and is 16 percent higher than the EPV at 62, assuming an interest rate of 1 percent.

Title
Calculating expected Social Security benefits by race, education and claiming age
Author
Sanzenbacher, Geoffrey T.
Ramos-Mercado, Jorge D.
Center
Center for Retirement Research
Genre
working paper
Date Issued
November 2016
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2016-14
Persistent Link
http://hdl.handle.net/2345/bc-ir:107225
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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