The Effects of Subjective Survival on Retirement and Social Security Claiming

TitleThe Effects of Subjective Survival on Retirement and Social Security Claiming
Publication TypeJournal Article
Year of Publication2004
AuthorsHurd, MD, James P. Smith, Zissimopoulos, JM
JournalJournal of Applied Econometrics
Volume19
Issue6
Pagination761-775
Call Numberpubs_2004_Hurd_etal_JAE.pdf
KeywordsExpectations, Social Security
Abstract

According to the life-cycle model, mortality risk will influence both retirement and the desire to annuitize wealth. We estimate the effect of subjective survival probabilities on retirement and on the claiming of Social Security benefits because delayed claiming is equivalent to the purchase of additional Social Security annuities. We find that those with very low subjective probabilities of survival retire earlier and claim earlier than those with higher subjective probabilities, but the effects are not large. The great majority of workers claim as soon as they are eligible. Copyright 2004 John Wiley and Sons, Ltd.

URLhttp://jae.wiley.com
Endnote Keywords

Social Security benefit claiming/Subjective Probabilities of Survival

Endnote ID

13622

Citation Key6965