In Debt and Approaching Retirement: Claim Social Security or Work Longer?

TitleIn Debt and Approaching Retirement: Claim Social Security or Work Longer?
Publication TypeJournal Article
Year of Publication2018
AuthorsButrica, BA, Karamcheva, NS
JournalAEA Papers and Proceedings
Volume108
Start Page401
Pagination401-406
Date Published05/2018
ISSN Number2574-0768
Accession Number1699537
KeywordsDebt, Retirement Planning and Satisfaction, Social Security
Abstract

Over the past couple of decades, older Americans have become considerably more leveraged. This paper considers whether household debt affects the timing of retirement and Social Security benefit claiming. Using data from the Health and Retirement Study, we find that older adults with debt are more likely to work and less likely to receive Social Security benefits than those who are debt-free. Indebted adults are also more likely to delay fully retiring from the labor force and claiming their benefits. Among the sources of debt, mortgages have a stronger impact on older adults' behavior than do other sources of debt.

URLhttps://www.aeaweb.org/articles?id=10.1257/pandp.20181116
Citation Key9601