Accounting for Social Security claiming behavior

Pashchenko, Svetlana, and Ponpoje Proapakkarm. “Accounting for Social Security claiming behavior”. CRR WP 2018-8, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, September 2018. http://hdl.handle.net/2345/bc-ir:108143.
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Abstract

The paper examines why most individuals claim Social Security benefits before the full retirement age. Early claiming results in a substantial reduction in pension income, yet many people claim as early as possible, age 62, or soon thereafter. Since delaying claiming is equivalent to purchasing additional annuity income, this behavior is consistent with the so-called annuity puzzle. We provide a quantitative analysis of claiming decisions (or equivalently, of the demand for the Social Security annuity). Our tool is a structural lifecycle model calibrated to match many important features of the data.

Title
Accounting for Social Security claiming behavior
Author
Pashchenko, Svetlana
Proapakkarm, Ponpoje
Center
Center for Retirement Research
Genre
working paper
Date Issued
September 2018
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2018-8
Persistent Link
http://hdl.handle.net/2345/bc-ir:108143
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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