Talking Retirement

Paying People Not to Retire Works

Fed: Bonuses for Late Retirement Work, a story from the Dow Jones Newswire, reports on a policy paper by Jonathan F. Pingle from the Federal Reserve that finds the offering additional bonuses to older workers does keep people working longer.

Pingle found that each percentage point increase in the Delayed Retirement Credit, or DRC, “led to a percentage point increase in the employment rate of men aged 65 to 70.”

Mr. Pingles study indicates that we could raise the DRC to delay retirement even more. Read the news article.

The DRC is already part of the current Social Security system. According to the Social Security web site, “with delayed retirement credits, a person can receive his or her largest benefit by retiring at age 70.” For more information click here.