Delaying Social Security payments

Authors

  • John J. Spitzer SUNY College at Brockport, Department of Business Administration and Economics

DOI:

https://doi.org/10.61190/fsr.v15i3.4860

Keywords:

Bootstrap, Delayed benefits, Social Security, Asset allocation

Abstract

This paper reconciles previous research outcomes and explains why prior studies offer conflicting recommendations regarding the decision to delay Social Security payments. Using a bootstrap, this paper determines the age at which a retiree is better off deferring Social Security payments when rates of return are not constant. The expected rate of retum affects the breakeven age and the rate of retum is a function of asset allocation. When life expectancy and realistic investment retums are incorporated into the analysis, there are few circumstances that warrant postponing Social Security payments for early retirees.

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Published

2006-09-30

Issue

Vol. 15 No. 3 (2006): FSR Fall 2006

Section

New Original Submission

License

Copyright (c) 2006 Academy of Financial Services

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How to Cite

Delaying Social Security payments. (2006). Financial Services Review, 15(3), 233-245. https://doi.org/10.61190/fsr.v15i3.4860