Document Type

Article

Publication Date

Fall 2006

Abstract

This paper reconciles previous research outcomes and explains why prior studies offer conflicting recommendations regarding the decision to delay Social Security payments. Using a bootstrap, this paper determines the age at which a retiree is better off deferring Social Security payments when rates of return are not constant. The expected rate of return affects the breakeven age and the rate of return is a function of asset allocation. When life expectancy and realistic investment returns are incorporated into the analysis, there are few circumstances that warrant postponing Social Security payments for early retirees.

Citation/Publisher Attribution

Spitzer, J. J. (2006). Delaying Social Security payments: a bootstrap. Financial Services Review, 15(3), 233-245

Publisher Statement

© 2006 Academy of Financial Services. All rights reserved.

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