Optimal retirement ages for couple considering Social Security payments and withdrawals from private savings
DOI:
https://doi.org/10.61190/fsr.v18i3.4949Keywords:
Retirement, Annuities, Social Security, Retirement benefits, Couples retirementAbstract
Munnell and Soto's (2007) work on the optimal age to initiate Social Security benefits for couples is extended to a model that adds withdrawals from private savings to Social Security benefits. Optimal retirement age is found to be a function of savings and rate of return on those savings. Savings with zero or minimal return reduce or eliminate the motivation for postponing retirement. As the rate of return on those savings rises, delay becomes increasing beneficiall. A reduction in savings at retirement can result in several years of delay in retirement to achieve prior expected income with greater delays a function of the portion of expected income to be derived from savings.
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