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| Reference : Delays in claiming social security benefits |
| Scientific journals : Article | |||
| Business & economic sciences : Economic systems & public economics | |||
| http://hdl.handle.net/2268/17673 | |||
| Delays in claiming social security benefits | |
| English | |
Jousten, Alain  [Université de Liège - ULg > HEC-Ecole de gestion de l'ULg : UER > Théorie monétaire et macroéconomie >] | |
| Diamond, P. [ > > ] | |
| Coile, C. [ > > ] | |
| Gruber, J. [ > > ] | |
| 2002 | |
| Journal of Public Economics | |
| Elsevier Science | |
| 84 | |
| 357-386 | |
| International | |
| 0047-2727 | |
| Lausanne | |
| Switzerland | |
| [en] Social security benefit ; Claiming behavior ; Utility maximization model | |
| [en] This paper focuses on Social Security benefit claiming behavior, a take-up decision that
has been ignored in the previous literature. Using financial calculations and simulations based on an expected utility maximization model, we show that delaying benefit claim for a period of time after retirement is optimal in a wide variety of cases and that gains from delay may be significant.We find that approximately 10% of men retiring before their 62nd birthday delay claiming for at least 1 year after eligibility. We estimate hazard and probit models using data from the New Beneficiary Data System to test four cross-sectional predictions. While the data suggest that too few men delay, we find that the pattern of delays by early retirees is generally consistent with the hypotheses generated by our theoretical model. | |
| Researchers ; Professionals | |
| http://hdl.handle.net/2268/17673 |
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