Delaying Social Security payments
DOI:
https://doi.org/10.61190/fsr.v15i3.4860Keywords:
Bootstrap, Delayed benefits, Social Security, Asset allocationAbstract
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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