Behavioral Effects of Social Security Policies on Benefit Claiming, Retirement and Saving

TitleBehavioral Effects of Social Security Policies on Benefit Claiming, Retirement and Saving
Publication TypeReport
Year of Publication2012
AuthorsGustman, AL, Steinmeier, TL
InstitutionAnn Arbor, The University of Michigan
KeywordsPublic Policy, Retirement Planning and Satisfaction, Social Security
Abstract

This paper specifies three behavioral variants of a structural model of retirement and saving to bring predicted Social Security claiming rates closer to the rates observed in the data. The model, estimated with Health and Retirement Study data, is used to examine three potential policies: increasing early entitlement age, increasing normal retirement age, and eliminating payroll taxes after normal retirement age. Behavioral responses to increasing early entitlement age and eliminating the payroll tax are not affected by the behavioral variant used. Predicted effects of increasing the normal retirement age exhibit more sensitivity. Heterogeneity shapes the responses to these policy changes.

URLhttp://www.mrrc.isr.umich.edu/publications/publications_download.cfm?pid=828
Endnote Keywords

social security/Claiming behavior/Claiming behavior/early Retirement/retirement planning/Payroll tax/Public Policy

Endnote ID

69836

Citation Key5946