Forced to retire, some take Social Security early

[deminks]

http://news.yahoo.com/s/ap/20100808/ap_on_re_us/us_social_security_early_retirees

MIAMI – Paul Skidmore's office is shuttered, his job gone, his 18-month job search fruitless and his unemployment benefits exhausted. So at 63, he plans to file this week for Social Security benefits, three years earlier than planned.

"All I want to do is work," said Skidmore, of Finksburg, Md., who was an insurance claims adjuster for 37 years before his company downsized and closed his office last year. "And nobody will hire me."

It is one of the most striking fallouts from the bad economy: Social Security is facing a rare shortfall this year as a wave of people like Skidmore opt to collect payments before their full retirement age. Adding to the strain on the trust are reduced tax collections sapped by the country's historic unemployment — still at 9.5 percent.

More people filed for Social Security in 2009 — 2.74 million — than any year in history, and there was a marked increase in the number receiving reduced benefits because they filed ahead of their full retirement age. The increase came as the full Social Security retirement age rose last year from 65 to 66.

Nearly 72 percent of men who filed opted for early benefits in 2009, up from 58 percent the previous year. More women also filed — 74.7 percent in 2009 compared with 64.2 percent the previous year.

[aquart]

1. Which means they get a lot less than they would if they could have waited.

[Curmudgeoness]

3. But they are able to pay the bills. Sucks. All he wants to do is work.

Good news is that if a job did fall in his lap, he can stop taking the SS and postpone his retirement until he is ready.

[Cirque du So-What]

5. Also

If people go on SS and then find a full-time job, they have the ability to pay back what they've already drawn from SS in order to receive full benefits when they finally retire later on.

[Statistical]

10. Yup little known fact but can be worth it.

Generally speaking however both "early, "normal" (and the rarely used "late") SS retirements are based on actuarial tables.

Thus the AVERAGE (key word being average) retiree will collect the same amount of money regardless of the method chosen. If you KNOWS they will live shorter than average lifespan they should opt for early retirement. Likewise if someone KNOWS they will live longer than average they should opt for late retirement.

[ProgressiveEconomist]

18. Even better--for each month work drives your early SS payment to zero, your age-66

age-66 payment goes up. You don't have to repay any SS you've received to get this automatic recalculation at age 66.

See http://ssa.gov/pubs/10069.html , "Will you receive higher benefits later if benefits are withheld because of work?" Say you retire at age 62, and your initial benefit goes down the maximum amount, to 75 percent of the start-at-age-66 benefit. If you then immediately get a job, and earn so much that all your monthly benefits go to zero for four years, your age-66 benefit will go back up to 100 percent. It's as if you had never retired early at all.

For less extreme cases of going back to work after going on SS at age 62, the age-66 benefit won't go back up to 100 percent, but it will go up. Each month of zero benefit because of earnings raises your age-66 benefit just the same as if you had waited another month back at age 62 to start getting benefits in the first place.

IMO, most people looking for work without success so far would be very foolish NOT to start getting SS as early as possible. Should they succeed in finding a good job (about $40k a year or more) after they go on SS, SSA will roll the clock back when they reach age 66.

[Warren Stupidity]

12. Actually if you can afford the monthly reduction you generally get more

in total from ss by taking the early option. Those 3 extra years of benefits tend to be much more than the monthly reduction.

[madrchsod]

2. i started mine last year at 62.

out of work over two years and ran out of unemployment. luckily i started my ss several months after running out. at least i can pay the mortgage each month!

[Roon]

4. My Grandfather retired early

He figures he gave up about 100,000. He did say it was worth it!

[CountAllVotes]

6. good for him!

I know of one too many people out there that didn't live long enough to collect it.

Here's hoping he enjoys his new life! :D :toast:

:kick:

[Roon]

19. Thanks!

He'll be 90 next year! He is enjoying life, plenty of caretakers around otherwise both my Grandparents would be in assisted living at least.

[sueh]

7. My husband had to do the same. We ran out out of options.

He cannot find a job, either.

[elocs]

8. I will take my SS early in 4 years. Life is more than about money and as long as I have enough,

that's all I need. I can live on what I will get as well as I do now and that's good enough for me. I've always adjusted my standard of living to the amount of income I have coming in and this will be no different.

[dixiegrrrrl]

9. The other side of the coin:

My mother worked for the city, retired at age 55,had a pension,had Soc. Sec. to look forward to also.
and died 2 years later.
Her husband died 2 years after that, at 59.

I suspect there is considerable number of people who do not live log enough to begin using their
retirement funds.

[JDPriestly]

11. I had hoped to work until I was 70, but it was impossible.

I think there are a lot of people like me. No decent jobs. And if you try to go into business for yourself, you soon learn that the people who need your services cannot afford to pay you enough to justify the risk that you take when you run your small business. They don't pay you enough, for example, to pay your insurance costs or overhead costs. It's very sad because many people need the services that I could offer if I could afford to offer them.

[hobbit709]

13. That's my plan.

I'm 60 with health problems-my chances of getting hired at some place with benefits is less than zero.
Thank god that my healthcare is through the VA-that costs me $56/mo. My wife was the primary wage earner but she passed away last year. At least the house will be paid off in Jan.-that will be a big drop in my expenses.

[eridani]

14. I got on at age 62 as well

My company laid off 1000 people and had a very nice bribe, which I was glad to take.

[oldlib]

15. Caught in a Company Downsize

in 1995, at age 62 and without the prospect of re-employment, I was forced to apply for early retirement with Social Security. In addition I took a lower payment plan to assure that my wife would have more money in the event of my death.

[IBEWVET]

16. Facing the same thing if

My job went away. At 62 and health issues, forget about getting another job. I would have to start S.S. as soon as unemployment ran out. Fortunately, I work at a union company, so have seniority unless the plant closes. I feel Lucky that I still have a job, with so many without.

[lunatica]

17. Having been a housewife for 15 years I won't get much Social Security

I'll have to live communally, which might not be a bad idea, since I don't want to be dependent on my son who is also struggling. I'm very healthy so I will probably work throughout my 60s, and maybe into my 70s, which is also fine with me. I've never had something that I planned to do that I would put off till retirement.

The American Dream was always a pipe dream. It's now a distant delusion gathering dust for most Americans. I've never believed in it, even though I've seen retirees living it.