U.S. Social Security retirement benefits are paid as an annuity, though some workers might be willing to trade a portion of the stream for a lump sum. Previously we showed theoretically that allowing people to receive their deferred credits as a lump sum rather than as an addition to their lifetime Social Security benefits could induce longer work lives. To test this empirically, we will use the American Life Panel to assess whether people might be willing to work longer in exchange for additional lump-sum retirement credits instead of a larger annuity.
Will They Take the Money and Work? An Empirical Analysis of People’s Willingness to Delay Claiming Social Security Benefits for a Lump Sum
Olivia S. Mitchell, Raimond H. Maurer,2014