There’s a podcast out of the Wharton School of Business at the University of Pennsylvania about one professor’s theorizing about ways to convince people to work longer and delay starting their Social Security benefits. She wonders whether some lump sum bribe would work.
With fewer than 10% of people now waiting to age 67 to start drawing Social Security, I’m doubting this scheme would work. Health issues drive many, perhaps most, retirement decisions. People are much more into sufficing rather than maximizing income and wealth than this professor realizes.
Governments incentivize people to do some things and avoid doing others. This is an area where additional incentives seem over the top to me. Elderly poverty is certainly a problem but I don’t think this would be an appropriate or effective way of addressing the problem.