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.
Spitzer, John J., "Delaying Social Security Payments: A Bootstrap" (2006). Business-Economics Faculty Publications. 15.
Spitzer, J. J. (2006). Delaying Social Security payments: a bootstrap. Financial Services Review, 15(3), 233-245
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