This study analyzes the role of individual’s and spouse’s survival expectations and knowledge about Social Security rules on the expected Social Security claiming age, taking into account the various incentives single and married individuals face. There is substantial heterogeneity in the level of knowledge about SS rules according to demographic characteristics. We find that single men and women who expect to be long-lived plan on delaying Social Security claiming. When we allow for differential effects of survival on knowledge about Social Security rules, subjective survivals matter only for single women who are knowledgeable. For single men, knowledge is not so important in their decisions. The claiming decision of married individuals is more complicated, because they are entitled to spouse’s and survivor’s benefits. Consistent with the incentives provided by Social Security rules, we find that married men base their expected claiming age on their spouse’s survival expectations but not on their own survival. For married women, both own and spouse’s subjective survivals positively influence the timing of claiming. Knowledge about Social Security rules affects the expected claiming age of both married men and women.
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Paper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number
wp167.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Li Gan & Michael D. Hurd & Daniel L. McFadden, 2005.
"Individual Subjective Survival Curves,"
NBER Chapters,
in: Analyses in the Economics of Aging, pages 377-412
National Bureau of Economic Research, Inc.
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COILE, Courtney & DIAMOND, Peter & GRUBER, Jonathan & JOUSTEN, Alain, 2000.
"Delays in claiming social security benefits,"
CORE Discussion Papers
2000029, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)