Effects of changes in social security’s delayed retirement credit

The delayed retirement credit (DRC) boosts monthly OASI retired worker benefits for primary beneficiaries who claim beyond full retirement age, according to a study. DRC was initially 3.0 percent every year, but in 1983 Social Security changes raised it to 8.0 percent. This article uses Social Security Administration data to evaluate how the DRC rise affects claiming behavior and labor supply. The DRC increase may have delayed claiming among men, particularly those with greater lifetime salaries. No changes were seen in women’s claims or labor supply.

Image courtesy of interviewee. December 19, 2023

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