An Investigation of Policy Incentives for Delaying Public Pension Benefit Claims

The purpose of this study is to examine the potential and cost of policy incentives for individuals to defer public pension (social security) claims. Using Internet survey experiments, the impacts of introducing three potential policies to defer public pension claims are examined: (1) a tax incentive for private term pension premiums, (2) a tax incentive for private term pension benefits and (3) a tax disincentive for financial asset holdings. Effectiveness of information provision regarding projection of future financial assets is also examined. Tax incentives have a certain impact on deferment of public pension claims. Among incentives, increase of benefits is the most effective one. Providing information regarding future financial assets reduces incentives. This study is original in measuring cost for delaying public pension claims according to incentives and information provision.