Framing Effects and Expected Social Security Claiming Behavior
AbstractEligible participants in the U.S. Social Security system may claim benefits anytime from age 62-70, with benefit levels actuarially adjusted based on the claiming age. This paper shows that individual intentions with regard to Social Security claiming ages are sensitive to how the early versus late claiming decision is framed. Using an experimental design, we find that the use of a “break-even analysis” has the very strong effect of encouraging individuals to claim early. We also show that individuals are more likely to report they will delay claiming when later claiming is framed as a gain, and when the information provides an anchoring point at older, rather than younger, ages. Moreover, females, individuals with credit card debt, and workers with lower expected benefits are more strongly influenced by framing. We conclude that some individuals may not make fully rational optimizing choices when it comes to choosing a claiming date.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17018.
Date of creation: May 2011
Date of revision:
Publication status: published as 5. Brown, J.R., Kapteyn, A., and Mitchell, O., “Framing and Claiming: How Information-Framing Affects Social Security Claiming Behavior”, The Journal of Risk and Insurance, 2014, forthcoming .
Note: AG PE
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Other versions of this item:
- Jeffrey R. Brown & Arie Kapteyn & Olivia S. Mitchell, 2011. "Framing Effects and Expected Social Security Claiming Behavior," Working Papers 854, RAND Corporation Publications Department.
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
- NEP-AGE-2011-05-14 (Economics of Ageing)
- NEP-ALL-2011-05-14 (All new papers)
- NEP-EXP-2011-05-14 (Experimental Economics)
- NEP-LAB-2011-05-14 (Labour Economics)
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.:
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