224

Social security and a lump-sum payment

Throughout the world, social security systems are currently running out of money. That’s so sad, but the typical policy measures can hardly be regarded as popular. For instance, these are cutting benefits of raising taxes and increasing the retirement age.

Meanwhile, a group of researchers tried to work out a new effective way to make people delay their claiming benefits, work much longer and let it take place without huge financial losses to social security.

The very essence of the idea is to give people the tempting benefit increases they’d obtain if they delayed their claiming.  However, instead of providing them with this stuff as a part of a monthly payment, it would be given to them as a lump sum right at their later claiming date. Here, the money turns out to be substantial enough, ranging from $60,000 - $170,000. The idea seems to be getting enough supporters.          

The recently conducted survey states that folks would delay claiming their benefits for half a year. Then, they would work approximately a third to a half of the additional time. What really encourages is that all of this doesn’t cost social security a penny. 

Scroll to top