The effects of subjective survival on retirement and Social Security claiming
Article first published online: 17 MAY 2004
Copyright © 2004 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Special Issue: The Econometrics of Social Insurance
Volume 19, Issue 6, pages 761–775, 2004
How to Cite
Hurd, M. D., Smith, J. P. and Zissimopoulos, J. M. (2004), The effects of subjective survival on retirement and Social Security claiming. J. Appl. Econ., 19: 761–775. doi: 10.1002/jae.752
- Issue published online: 19 NOV 2004
- Article first published online: 17 MAY 2004
- Manuscript Revised: 21 JUL 2003
- Manuscript Received: 16 NOV 2001
- Social Security Administration.
- National Institute for Aging.
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 & Sons, Ltd.