Please turn on JavaScript

Brooks Wilson's Economics Blog: Unemployed Retiring to Collect Social Security

Tuesday, May 26, 2009

Unemployed Retiring to Collect Social Security

Many Social Security eligible unemployed are retiring early and drawing reduced benefits rather than rebuilding their retirement accounts.  From Mike Dorning of the Los Angeles Times, "Early retirement claims increase dramatically," May 24, 2009. 
Reporting from Washington -- Instead of seeing older workers staying on the job longer as the economy has worsened, the Social Security system is reporting a major surge in early retirement claims that could have implications for the financial security of millions of baby boomers.

Since the current federal fiscal year began Oct. 1, claims have been running 25% ahead of last year, compared with the 15% increase that had been projected as the post-World War II generation reaches eligibility for early retirement, according to Stephen C. Goss, chief actuary for the Social Security Administration.

Many of the additional retirements are probably laid-off workers who are claiming Social Security early, despite reduced benefits, because they are under immediate financial pressure, Goss and other analysts believe.

The numbers upend expectations that older Americans who sustained financial losses in the recession would work longer to rebuild their nest eggs. In a December poll sponsored by CareerBuilder, 60% of workers older than 60 said they planned to postpone retirement.

1 comment:

  1. The US News & World Report has let it be known that Social Security is getting a raise in 2012. This is an adjustment for inflation based on the Consumer Price Index (CPI) Wonderful, means about 40.00 in the checks. Only problem though is Medicare cost is going up which will chomp up any raise that the people get in their checks. Sounded good for a while. What they need to do is evaluate case by case and make sure that people that are on SSI actually deserve to be on it. After seeing a 400 pound guy get SSI not for his weight issues but because his lifestyle has him sucking a pacifier, drinking out of a baby bottle and wearing diapers.This makes me wonder about the validity of some people that are on SSI.