- Start Date
- Duration
- Format
- Language
- 5 nov 2024
- 4,5 days
- Class
- Italian
The decision of when to claim Social Security retirement benefits is one of the pivotal financial choices facing older Americans. This decision holds significant weight as it directly impacts the financial well-being of individuals during their retirement years. Social Security benefits can be claimed as early as age 62, but delaying can lead to higher monthly payments. However, the optimal claiming age varies for each individual, depending on factors such as their financial situation, life expectancy, and personal preferences.
We embarked on a comprehensive study to delve into the psychological aspects influencing the decision-making process regarding Social Security benefit claiming. Our aim was to shed light on effective strategies to nudge individuals toward delaying their claim, and in doing so, maximizing their long-term financial security.
Our research involved a rigorous examination comprising four large-sample experiments, collectively encompassing approximately 13,245 participants. Three studies included people between 40 and 61, while in the fourth study the age range was from 50 to 61. We designed interventions targeting various psychological processes to influence participants' intentions regarding the age at which they planned to claim Social Security benefits.
The interventions were diverse, covering a spectrum of psychological mechanisms:
Through these interventions, we wanted to discern which psychological triggers were most effective in nudging individuals toward delaying their Social Security benefit claims.
The findings of the study offer valuable insights into the nuanced dynamics underlying the decision-making process regarding Social Security benefit claiming. Surprisingly, it revealed that highlighting the financial benefits of delaying claiming often influenced individuals' decisions, whereas framing the information in terms of potential losses did not have a significant impact.
Moreover, as far as persuading people to delay their benefit claims, interventions that prompted self-reflection showed promise, particularly those encouraging individuals to consider how long they, and others, will live. This suggests that urging individuals to contemplate their future selves and the potential risks associated with premature claiming can be an effective strategy in influencing decision-making in this domain.
Overall, Social Security benefit-claiming decisions are influenced by a multitude of individual and psychosocial factors. By understanding these complexities and leveraging effective psychological interventions, policymakers and financial advisors can better assist individuals in making informed decisions that align with their long-term financial goals and well-being.
Adam Eric Greenberg, Hal E. Hershfield, Suzanne B. Shu, Stephen A. Spiller, “What Motivates Social Security Claiming Age Intentions? Testing Behaviorally Informed Interventions Alongside Individual Differences.” Journal of Marketing Research, Volume 60 Issue 6, December 2023, DOI: https://doi.org/10.1177/00222437221147221.