Determining when to apply for Social Security benefits (SSB) is a decision that must be made by all United States citizens approaching the age of eligibility, currently set at age 62. What has not been currently addressed is a widely accessible, complete, clearly defined set of rules detailing the conditions and calculations involved in determining an individual's monthly benefit. What is also lacking is a tool available to the public that estimates the optimal age to apply for SSB, tailoring these results to the individual.
We provide four contributions. First, we provide mathematical and flowchart representations of the Social Security Retirement rules and calculations for determining monthly payments for both the Single-Person and Two-Person problems. We then provide software, written in Python, for optimizing when an individual or couple should apply for SSB. The software is based on user inputted parameters, where the objective is to maximize the expected net present worth of the decision. Both the Single-Person and Two-Person problems are addressed. This software can also be applied to similar retirement programs with minimal adjustment. Third, we provide two theorems governing the behavior of the optimal starting-age solution with respect to rate of return. Lastly, we provide an analysis of several examples of single-person and two-person scenarios.
|Advisor:||Schmeiser, Bruce W.|
|Commitee:||Uhan, Nelson, Wan, Hong|
|School Location:||United States -- Indiana|
|Source:||MAI 50/03M, Masters Abstracts International|
|Subjects:||Finance, Industrial engineering, Operations research|
|Keywords:||Benefits, Earnings, Retirement, Social security, Spouses, Survivor|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be