Early Retirement Social Security Claims Show Dramatic Increase (55, moving, spouses)

[TuborgP]

Early retirement claims increase dramatically - Los Angeles Times
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.

The above is from the link.

They think it may be seniors who have lost their job and are packing it in. It is a good read and the the topic deserves our paying attention to and probably discussing the implications. Early Boomers are one thing but those who are towards the end of the cycle could have some serious consequences.

[nancy thereader]

Well, I know that I was one. I retired the first moment that I could. I don't feel guilty about it ; I worked for over thirty years in order to retire when I did.

[taurus430]

What would they expect, jobs are not there, especially for the older worker. If you can't get a job and are of age, might as well take early retirement!

[TuborgP]

Originally Posted by taurus430

What would they expect, jobs are not there, especially for the older worker. If you can't get a job and are of age, might as well take early retirement!

you make all of the sense in the world. I can only assume that those is the SS administration don't understand our world. If they live in the North East they probably have a ton of equity in their houses still and now is the time to head out of Dodge.

[nancy thereader]

When they lowered the retirement age to 55 (from 62) for just a short window of time , the NYC schools were shocked that so many teachers took advantage of that early retirement. They didn't plan for all the vacancies and it took forever to get our first retirement checks.

It shows that they have no sense of reality.

[Waterlily]

That is news. I have wondered if people would wait until they are 66 or not. It looks like the high unemployment has led some older workers to collect their S.S. early. There are some people who have enough money to do, and just don't see the point of keeping on with a job. I can't blame them.

[nicet4]

Originally Posted by Waterlily

That is news. I have wondered if people would wait until they are 66 or not. It looks like the high unemployment has led some older workers to collect their S.S. early. There are some people who have enough money to do, and just don't see the point of keeping on with a job. I can't blame them.

I am just getting to the age where social security is becoming an important issue but it appears my benefits will nearly double by opting to work to 70 instead of 62.

That's the difference between eating cat food, and seeing how I live in a low tax/low cost of living area of the country, living a pretty good life.

Looks like I got to work nine more years.

[TuborgP]

The dynamics of us boomers is very different from previous generations. We have more woman in the work force and we know from other threads the stress on single woman and retirement. On the other hand we have more two income earners and many fiancial planners will tell you that the one with the lowest benefit should take their SS at 62. Also a little know but becoming more known loophole exists that has a significant impact. A married couple the same age or close in age this works best for.
Low benefit person takes SS at 62.
Spouse with the highest benefit takes spousal benefits at their normal retirement age which for many of us is 66. That enables their benefit to continue to increase to age 70. At age 70 they take their benefit. If one spouse dies the surviving spouse can not get two payments. This way the survivor can continue to take their own benefit or spousal benefits which ever is higher when one passes. If he break even age is 77 for waiting vs taking it early you can see how it is worthwhile for one of the spouses to get what they can early and for the other to wait and let the highest benefit continue to build. You can both be retired at 66 and each have a SS benefit while one continues to have their benefit increase. Hopefully they don't close the loophole before I can take advantage of it. The IRS is fully aware of it and says it is perfectly legal. It may not have been the intent of the regs when written but is there.
Hope I didn't confuse.

[texdav]

That is because many are eligable for retirement and see this as the right tme to go. Anyhting can happen with SS if you wait including raising retirement age and benefits.Many I suspect are taking oit at 62 because things can change before 65or 66. You can always take the benefit at 62 then pay back the money at 65 and get the increased benefit;but that can also change on a government whim.

[TuborgP]

Originally Posted by texdav

That is because many are eligable for retirement and see this as the right tme to go. Anyhting can happen with SS if you wait including raising retirement age and benefits.Many I suspect are taking oit at 62 because things can change before 65or 66. You can always take the benefit at 62 then pay back the money at 65 and get the increased benefit;but that can also change on a government whim.

As other benefits go by the wayside, your point is well made. If nothing is certain get it while you can. The rules are changing and no one knows what the new rules will be. When they last tried reform no one born prior to 1950 would be impacted. However events are moving faster than expected if the number taking early benefits is really going to continue spiking.