Posted on 05/25/2009 7:24:37 AM PDT by reaganaut1
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.
Goss said it remained unclear whether the uptick in retirements would accelerate or abate in the months ahead. But another wave of older workers may opt for early retirement when they exhaust unemployment benefits late this year or early in 2010, he noted.
The ramifications of the trend are profound for the new retirees, their families, the government and other social institutions that may be called upon to help support them.
On top of savings ravaged by the stock market decline and the loss of home equity, many retirees now must make do with Social Security benefits reduced by as much as 25% if they retire at age 62 instead of 66.
"When the recession ends and the economy bounces back, there may be a band of people for whom things will never be the same again.
(Excerpt) Read more at latimes.com ...
Get ready folks, major tax increases are just round the corner.
My mom’s just started receiving benefits. I told her to get it now before it’s gone. I suspect a lot of people are doing the same.
I doubt if they are concerned with the economy twenty years from now.
If you retire at 62, you can still earn up to 12K a year till you are 65 or 66 at which time the amount goes up. That’s the way I understand it...
People who take it early, but continue working have $1 removed from their SS Benefits for every $2 they earn >$13000 working until they reach full retirement age.
So there are limits and penalties.
You are subject to the earnings limit if you retire at age 62. You can still work part-time and have a small earned income.
This limit does not apply to those who take SS at the full retirement age.
For example let's say a SS monthly amount of 750.00 / month at 62 and 1000.00 / month at 66.
In four years you would have received 12 X 4 X 750.00 = $36,000.00.
The $250.00 extra would take 12 YEARS to recover that $36,000 or by age 78 !
This is without interest. Now if the 36,000 returned a 5% interest at age 78 it would be worth ~ $60,000 +. It is a no brainer.
Could it also be that our census figures are off just like our estimates of the number of illegal aliens?
CUT Government to create more Money for Social Security.
Do not fund the SocSec “lock box” with more Taxes. Put Government workers out on the street looking for real productive work to do, instead of sucking the teat of the Feds ad nauseum.
Government stole Social Security, now let Government pay for its crime against American Tax Payers.
I have Seen the Federal Government offices, 5 people do the Job of 1, and they Retire while still on the Job, supposedly working. Its a Hard cruel world out there, and Social Security was robbed, let the Robbers learn a lesson.
And remember that under current law, you can do a “full reset” of SS up to age 70.
Pay back everything you’ve received (no interest charges) and start over.
When the economy does a down-turn, older workers are the first to be released at many companies. The reason — their salaries are higher, so the companies save more by getting rid of them.
Older workers tend to be the lesser desirables when companies are hiring. Companies like younger workers because they can usually get them at lower salaries.
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For many recently unemployed older workers, SS may be one of the few viable options, after their unemployment benefits run out.
See this for answer to question about working and receiving SSA-Retirement.
http://www.socialsecurity.gov/retire2/whileworking.htm
Could it be that Atlas is shrugging?
I think so!
Someone mentioned that if you take SS at 62, it reduces benefits for the rest of your life. However, if you pay all the money back at 65, you can move into the higher bracket at 65.
However, I am gainfully employed at present. In the event this employment ends, I will immediately file for and begin to receive my SS.
Therefore, I humbly ask that all of you younger folks out there keep working! In fact, take on two jobs....
We need you to continue to fund the SS so that I can continue to draw it.
Don't worry....with the new socialist gummint of the US, you'll all be on government social programs by the time you reach 62. I'll be long gone by then....along with all the money that you kind folks contributed to my "golden" years!
Heck of a system we've designed for ourselves, yes?
Certainly. But you shouldn't worry, ACORN will get it right in 2010.
Another group to look at are those folks who retired early thinking they had plenty of money. Now they don’t and they are claiming SS as soon as they can instead of going back to work.
Accompanied by large decreases in SS benefits and denial of service in Medicare.
Take the money at 62? Why. Do the math.
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I did the math. I lost $350 a month by not waiting until I was 66.
And I am not sorry that I did not wait. I was emotionally burned out from 25 years as a Social Services Case Worker for Alabama and then Georgia. I had worked in Child Protective Services and Adult Protective Services (one year each during my tenures) and saw abuses that still give me nightmares.
I retired because it was time for me to retire. My family lives into their late nineties/early hundreds. Assuming I don’t end up on the receiving end of someone else’s death-wish, I have another 44 or so years to enjoy retirement.
Happy Retirement is the one that makes sense for you, no matter what any mathematician ciphers out.
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