Framing and Claiming: How Information-Framing Affects Expected Social Security Claiming Behavior

Eligible participants in the U.S. Social Security system may claim benefits anytime between ages 62 and 70, with benefit levels actuarially adjusted based on the claiming age. This paper shows that peoples' 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 "breakeven analysis" has the very strong effect of encouraging individuals to claim early. We also show that respondents 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, women, those 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.