郭瑞,孙伟,Wang Jianqiu,肖刚——APPLIED ECONOMICS:Why do retired workers claim their social security benefits so early? A potential explanation based on t...
时间:2020-01-26
Social Security provides longevity insurance for older Americans. According to expected utility theory models, rational households who are not liquidity constrained should delay claiming their Social Security benefits to insure consumption in late life. However, data shows that most retired workers claim soon after becoming eligible. This paper explains the early claiming behaviors using the cumulative prospect theory. We show that when making claiming decisions, individuals consider benefit gai