scholarly journals Will They Take the Money and Work? An Empirical Analysis of People's Willingness to Delay Claiming Social Security Benefits for a Lump Sum

2015 ◽  
Author(s):  
Raimond Maurer ◽  
Olivia S. Mitchell ◽  
Ralph Rogalla ◽  
Tatjana Schimetschek
Keyword(s):  
Social Security ◽  
Empirical Analysis ◽  
Lump Sum ◽  
Social Security Benefits

scholarly journals Older peoples' willingness to delay social security claiming

2020 ◽  
pp. 1-16
Author(s):  
Raimond Maurer ◽  
Olivia S. Mitchell
Keyword(s):  
Social Security ◽  
Older Persons ◽  
Current System ◽  
Work Requirement ◽  
Lump Sum ◽  
Average Household Income ◽  
Time Work ◽  
Part Time ◽  
Social Security Benefits ◽  
Retirement Study

Abstract We have designed and implemented an experimental module in the 2014 Health and Retirement Study to measure older persons' willingness to defer claiming of Social Security benefits. Under the current system’ status quo where delaying claiming boosts eventual benefits, we show that 46% of the respondents would delay claiming and work longer. If respondents were instead offered an actuarially fair lump sum payment instead of higher lifelong benefits, about 56% indicate they would delay claiming. Without a work requirement, the average amount needed to induce delayed claiming is only $60,400, while when part-time work is stipulated, the amount is slightly higher, $66,700. This small difference implies a low utility value of leisure foregone, of under 20% of average household income.

scholarly journals The National Commission On Fiscal Responsibility And Reform: How Its Report Can Impact Marginal Tax Rates

2011 ◽  
Vol 9 (6) ◽  
pp. 25
Author(s):  
Steven R. Ferraro ◽  
Richard W. Powell
Keyword(s):  
Social Security ◽  
The United States ◽  
United States Government ◽  
National Commission ◽  
Tax Rates ◽  
Partial Loss ◽  
Fiscal Responsibility ◽  
Lump Sum ◽  
Marginal Tax Rates ◽  
Social Security Benefits

The United States government has a serious budget problem. In 2010 President Barack Obama created the National Commission on Fiscal Responsibility and Reform to deal with the problem by identifying policies to improve the fiscal situation. Among the Commissions recommendations was a proposal to modify payments under Social Security. For most recipients, the modifications would decrease Social Security benefits although benefits would increase for the poorest quintile of recipients. The purpose of this paper is to construct a model for evaluating the proposed shift in Social Security payments. From the perspective of Social Security recipients, the model shows the cutbacks as the partial loss of an annuity stream, as the loss of a lump sum that is capable of generating the partial annuity stream, and as a tax increase for the remainder of the recipients working years as they deposit a special tax into a retirement account designed to replace the lost benefits.

scholarly journals The contribution of changes to tax and social security to stalled life expectancy trends in Scotland: a modelling study

2020 ◽  
pp. jech-2020-214770
Author(s):  
Elizabeth Richardson ◽  
Martin Taulbut ◽  
Mark Robinson ◽  
Andrew Pulford ◽  
Gerry McCartney
Keyword(s):  
Life Expectancy ◽  
Social Security ◽  
Tax Credits ◽  
The Difference ◽  
Group Sex ◽  
The Uk ◽  
Social Security Benefits ◽  
The Impact ◽  
Welfare Reforms ◽  
Detrimental Impact

BackgroundLife expectancy (LE) improvements have stalled, and UK tax and welfare ‘reforms’ have been proposed as a cause. We estimated the effects of tax and welfare reforms from 2010/2011 to 2021/2022 on LE and inequalities in LE in Scotland.MethodsWe applied a published estimate of the cumulative income impact of the reforms to the households within Scottish Index of Multiple Deprivation (SIMD) quintiles. We estimated the impact on LE by applying a rate ratio for the impact of income on mortality rates (by age group, sex and SIMD quintile) and calculating the difference between inflation-only changes in benefits and the reforms.ResultsWe estimated that changes to household income resulting from the reforms would result in an additional 1041 (+3.7%) female deaths and 1013 (+3.8%) male deaths. These deaths represent an estimated reduction of female LE from 81.6 years to 81.2 years (−20 weeks), and male LE from 77.6 years to 77.2 years (−23 weeks). Cuts to benefits and tax credits were modelled to have the most detrimental impact on LE, and these were estimated to be most severe in the most deprived areas. The modelled impact on inequalities in LE was widening of the gap between the most and least deprived 20% of areas by a further 21 weeks for females and 23 weeks for males.InterpretationThis study provides further evidence that austerity, in the form of cuts to social security benefits, is likely to be an important cause of stalled LE across the UK.

Sign in / Sign up

Export Citation Format

Share Document