Author = Nili, Masoud
Number of Articles: 1
Social Security Payments and Decision about Timing of Retirement: An Economic Analysis
Volume 12, Issue 47, Winter 2013, Pages 217-244
Masoud Nili, Amirreza Seyed Khosroshahi, Seyed Babak Ebrahimi
Abstract This paper seeks to address the question that whether and to what extent does Social Security retirement benefits cause early retirement. This question is studied under “Option Value” and “Peak Value” models, in which the individual's retirement decision is derived as a function of future variations of present value of social security wealth. The results indicate that Social Security (in the form of retirement benefits) has a significant effect on retirement decisions and that the future path of these benefits is an important determinant of the probability of retirement among would-be retired men.