RetireSecure Blog

June 20, 2013

Lump Sums, Anyone?

Filed under: New Research,PRC in the News,Retirement Research — The Pension Research Council @ 12:24 pm

A recent paper by Jingjing Chai, Raimond Maurer, Olivia S. Mitchell, and Ralph Rogalla shows that the option of a lump sum payment could persuade workers to claim Social Security benefits 1.5-2 years later. The lump sum would be equal to the value of the deferred benefit payments, but “would be cost-neutral to the system, on average.” According to the paper, the likelihood of individuals retiring later as a result of the lump sum incentive rose from 4% to 49%.

Read more about the paper here.  The paper is available for download here. (Registration is required.)



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