Document Type


Publication Date

Fall 2006


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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