Should A Lump-Sum Payment Replace Social Securitys Delayed Retirement Credit?
) (Center for Retirement Research) Abstract Transforming Social Security’s delayed retirement credit into a lump-sum payment rather than an increased monthly payment would likely encourage more workers to defer retirement and benefit claiming. The idea is thus worthy of further exploration. Several important design issues, however, must be addressed before policymakers give serious consideration to the reform. The most problematic aspect of the proposal is that implementing a lump-sum payment system for individuals older than the normal retirement age may create political pressure to extend this approach to those who are younger than the normal retirement age. Such an extension would risk a significant increase in elderly poverty rates relative to the current Social Security system. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In
