Future Beneficiary Expectations of the Returns to Delayed Social Security Benefit Claiming and Choice Behavior

31 Pages Posted: 22 Feb 2008

See all articles by Jeff Dominitz

Jeff Dominitz

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management; RAND Corporation

Angela Hung

Carnegie Mellon University; RAND Corporation

Arthur van Soest

Tilburg University; Netspar; RAND Corporation; Institute for the Study of Labor (IZA)

Date Written: October 1, 2007

Abstract

We report on our preliminary findings from an innovative module of survey questions in the RAND American Life Panel designed to measure willingness to delay take-up of Social Security benefits. Among respondents who expect to stop working full time prior to turning age 62, over 60 percent report that they expect to start claiming Social Security benefits after they turn 63 - that is, they expect to delay claiming. In contrast, among those who expect to stop full-time work sometime from age 62 to age 70, only about one-quarter expect to delay claiming beyond the retirement age. Another main finding arises from reported probabilities of delayed claiming in hypothetical choice scenarios. These probabilities tend to be quite high relative to previous findings on delayed claiming outcomes. This result is particularly striking for those who are presented with information about the so-called "break-even age" for delayed claiming rather than information about the total amount of benefits that must be foregone during the one year delay.

Suggested Citation

Dominitz, Jeff and Hung, Angela and van Soest, Arthur H. O., Future Beneficiary Expectations of the Returns to Delayed Social Security Benefit Claiming and Choice Behavior (October 1, 2007). Michigan Retirement Research Center Research Paper No. WP 2007-164, Available at SSRN: https://ssrn.com/abstract=1082827 or http://dx.doi.org/10.2139/ssrn.1082827

Jeff Dominitz (Contact Author)

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

Angela Hung

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

Arthur H. O. van Soest

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

RAND Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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