Forced to retire some decide take Social Security early
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 its first-ever 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.
Jason Fichtner, an associate commissioner at the Social Security Administration, said the weak economy has led more people who lost their jobs to retire early. However, it also has forced some people hard-hit by the recession and in need of a bigger paycheck to push back retirement and stay in the work force longer.
“But we’re seeing more people taking early benefits than staying in the workforce longer,” Fichtner said.
Like Skidmore, 63-year-old Jan Gissel of Tustin, Calif., also was forced into retirement early. She turned to unemployment benefits when her technical support business failed and filed for Social Security last September. Together, the checks are keeping her afloat.
“I knew I had to have an income from somewhere, and my business wasn’t giving it to me,” she said. “I just went online and, boom, three weeks later I had the check.”
Gissel wants to continue working but still hasn’t found a job. Although she didn’t expect to be cashing Social Security checks so soon, she’s grateful for the support it has provided.
“I needed it way earlier than I thought,” she said.
In the annual report of the Social Security program released Thursday, the trustees said that pension and disability payments will exceed revenues for this year and 2011, reflecting the deep recession.
The report forecast that the program would return to the black in 2012 through 2014, but that benefit payments will again exceed tax collections in 2015. For every year after 2015, the report projects that Social Security will be paying out more than it receives in tax collections as 78 million baby boomers begin retiring.
The trustees did not focus on the growth of early retirees in their report, as they don’t expect the early retirees to significantly drain funds over the long-term. Early opt-ins receive smaller monthly checks so that they aren’t projected to receive any more money over a lifetime than they would if they had waited to collect Social Security until their full retirement age.
People entitled to full benefits at 66 would receive 75 percent of their check if they began collecting four years early. Conversely, if they waited until they turned 70, collecting four years late, they would earn 32 percent more.
They would receive the decreased — or increased — percentages for the rest of their life.
“From the trustees’ perspective it’s a wash, because they calculate you’ll get the same total benefit,” said Maria Freese, director of government relations and policy at the National Committee to Preserve Social Security and Medicare.
Freese added, though, that beneficiaries generally only opt in early because they have to.
“When you retire early, you are taking a hit in your monthly check, and most people don’t do that voluntarily,” she said. “They either do that because they aren’t healthy enough to keep working or because they lost their job.”
Nora Lopez, 62, of Hialeah, Fla., retired from her job as an elementary school teacher last year and began collecting Social Security. She did so, in part, because of health problems. When her school district offered teachers the option of keeping their health insurance coverage until they qualified for Medicare at 65, she decided she could get by on her pension and Social Security.
“I wanted to work as long as I could,” she said. “But it was hard for me to do that.”
For some, it’s simply a matter of doing the math that prompts them to cash in early. Jack Dixon, 63, of Naples, Fla., stopped working full-time in April as a trolley driver and tour guide, cutting back to one day a week. He decided to do it after his wife figured out they’d be able to get by even with the reduced Social Security benefit.
“Why should I go out there to the hustle and bustle and stress and all the stuff that’s related to work if I don’t have to?” he asked.
—————————————–
As the economy continues to go to shit, expect more of this to happen. With Chinese labor costs beginning to rise (because the laborers and workers there are demanding more pay/more of the profitable cut) foreigners and American companies will be returning slowly to the United States to restart manufacturing (sadly I should’ve wrote about that article, it was on yahoo finance 2 weeks ago). The cost to manufacture one good is 47 cents per unit in America while it is now 32 cents in China currently. It use to be 16 cents so you can easily imagine why jobs just went “poof” here and over to my brethren overseas.
That’s the good news. The bad news is this will happen slowly, which means unemployment will continue to wallow around. Since the age old rule of “the people forget after a short while” is in effect, people are becoming less and less divided, as a total population percentage over things like healthcare reform or even immigration (gallup.com). Obama’s job approval is slowly dropping and is at about 40 or 47 % depending on which metric you want to use.
The point? Well, with so called rich people’s tax cuts expiring at the end of this year (if the Democrats get their way) expect more people to restrict spending. Many assume most “rich” people, who are different from “small business owners” (like myself) are one and the same so they think it does not matter if they get to keep more of their money as they will either “hire illegal mexicans” or just “ship jobs” overseas. Hostile business environments and business attitudes fuck a person over. Since everybody is looking to suck value out of us, well there’s just no real appreciation for what we bring to the table. Why bother, people just assume we’ll do nothing for the people so they’ll just pass laws to take all our shit away.
Of course by the time people realize that the evil performed by the super-big rich corporations does 90% of all the stupid shit (hiring overseas, hiring illegals, not creating wealth here at home before moving it elsewhere), it will probably be too late. Well, like I said before and I’ll say it again, you better go find a really fucking good Tax CPA and get your income below $50,000 or below after all deductions to qualify for the 15% tax rate. How else do you think Warren Buffet, GE, or Exxon-Mobile pay LESS in taxes than we do? Who’s really screwing who over?
Truth is people vote for what they get. Those who don’t vote or have no representation are basically stuck. There will always be people that game the system but don’t punish all the innocent people alongside the guilty. And poor economic policy combined with idiotic tax levies does just that.
Tags: Forced to retire some decide take Social Security early
I see your point, and I also totally appreciate the opinion. For what its worth I will be back again soon, extremely fresh. Cheers.
I see your point, and I also really appreciate the post. It goes without saying I will tell all my friends about it, really effective. Cheers.
Our dating agency http://greatgirlsdating.com has more than 10000 profiles of russian women . Find a russian bride of your dream in our catalog for free http://greatgirlsdating.com .
Im trying to find a design template or a plugin that could be in the position to solve my PDA browsing problem for your internet-site. If you have any specific suggestions, make sure you present your thinking. Cheers!
You should take part in a contest for one of the best blogs on the web.
Thank you so much for providing individuals with an extraordinarily brilliant chance to read from this site. It's usually very ideal and also stuffed with a good time for me personally and my office co-workers to search your blog nearly 3 times a week to see the new guidance you have got. And definitely, I am just certainly motivated considering the surprising secrets you serve. Selected 2 points in this article are undeniably the most suitable I've had.
Your net internet site looks strange if browsing via my personal iphone.
Actually nice styling as well as incredible written content , little else desired
.
I really understand where your coming from, coupled with I thoroughly adore the blog post. It's a given I will certainly convey to most my personal friends concerning it, quite authentic. Bye for now.
Great information, please continue to share more information in this topic. I have bookmarked your site.
Ive added this post to my favorites internet browser website link bar because I want to read it again.
I see your point, and I totally appreciate your article. For what its worth I also like the design of your website, really effective. Later.
Youre so cool! I dont suppose Ive read something like this before. So good to search out someone with some unique thoughts on this subject. realy thanks for beginning this up. this web site is one thing that's needed on the net, somebody with a bit originality. helpful job for bringing something new to the internet!
Great – I should certainly pronounce, impressed with your site. I had no trouble navigating through all tabs as well as related info ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your client to communicate. Excellent task.
Your home is valueble for me. Thanks!…
I will recommend this site!
Hiya, I'm really glad I've found this information. Today bloggers publish only about gossips and internet and this is actually irritating. A good site with interesting content, this is what I need. Thanks for keeping this website, I will be visiting it. Do you do newsletters? Can't find it.
Im looking for a template or even a plugin that could be in the position to deal with my Smartphone viewing problem for your site. If you have any specific guidelines, please present your opinions. Cheers!
I am impressed with this website , rattling I am a fan .
After I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get four emails with the identical comment. Is there any approach you'll be able to remove me from that service? Thanks!
Hey, My personal thoughts on this material are that its well-written, intelligent and easy to understand. I appreciate this kind of useful information, specially when it is this fine. In time your site will discover its potential. Adios for now.
Hello, You make great use of your words in this article. I am impressed with the valid points of interest you make here and I agree. I have considered starting a blog myself. Thanks a ton.
You should take part in a contest for one of the best blogs on the web.
Hi, You make great use of your words in this article. I am impressed with the valid points of interest you make here and I concur. I have considered starting a blog myself. Ok bye for now.
Most people achieve contribute loads, usually a lot more, to assist certain causes. In many scenarios, we could possibly participated straightaway in initiatives that we help and support, or we might have a pre-existing private relationship with key members of society a part of the endeavours concerned. In short, every one of us could and does provide help without having reimbursement on a selective basis.
I will recommend this site!
I am looking for a design template or a plugin that might be able to adjust my Personal digital assistant browsing issue for your blog post. If you have pretty much any recommendations, make sure you talk about your opinions. Cheers!
I precisely needed to appreciate you once again. I am not sure the things that I would’ve gone through without these tips shown by you about that subject. It actually was an absolute frustrating dilemma in my circumstances, however , taking note of the professional technique you solved it took me to weep over contentment. Now i am grateful for your assistance as well as believe you find out what a powerful job that you are providing training many people using your website. Most likely you have never got to know all of us. [Reply]
I get where your coming from, and I simply love the article. For what its worth I will tell all my friends about it, extremely inspiring. Bye for now.
For what its worth I will tell all my friends about it, quite artistic. Thanks.
Hosting Coupon Promo Code
Perfectly written content material, Really enjoyed reading through.
After study many of the blog articles in your web site now, i really as if your method of blogging. I bookmarked it to my bookmark website list and will also be checking back soon. Pls look at my internet site also and make me aware how you feel.
Keep up the wonderful piece of work, I read few articles on this web site and I think that your site is real interesting and holds sets of fantastic information.
I am a good darling of your web site. Remain within in the angelic perform.
I not to mention my pals have been looking through the nice hints from your site and unexpectedly I had a terrible suspicion I had not thanked the web blog owner for those secrets. Most of the people had been for this reason happy to read all of them and have in effect in fact been tapping into them. We appreciate you indeed being so accommodating as well as for having some good subject areas most people are really needing to understand about. My personal sincere apologies for not saying thanks to earlier.
It’s rare knowledgeable people on this topic, however, you could be seen as do you know what you’re discussing! Thanks
I’m sure you will find a issue with your internet site utilizing Flock browser.
I'm really impressed with your writing abilities and also with the structure on your blog. Is this a paid subject matter or did you modify it your self? Either way keep up the excellent high quality writing, it¡¦s rare to see a great blog like this one these days..
I am glad to be one of many visitors on this outstanding web site (:, thanks for posting .
Seriously fine styling in addition to fantastic content material , nothing else necessary
.
Hello, My personal ideas on this material are that its well-written, brilliant and easy to understand. I appreciate this kind of useful information, particularly when it is this smart. I have considered starting a blog myself. L8rs for now.
You should take part in a contest for one of the best blogs on the web.
Thanks for sharing this great article. Very inspiring! (as always, btw)
For what its worth I will be back again tomorrow, incredibly artistic. Cheers.
I see your point, and I simply love your article. It goes without saying I will be back again tomorrow, extremely inspiring. Thanks.
A lot of us achieve contribute plenty, sometimes more, to support specific causes. In many scenarios, we could possibly participated directly in plans that we help support, or we might have a pre-existing personal relationship with critical persons involved with the endeavours concerned. In short, all of us could and does provide help without having pay on a particular grounds.
Hi! Quick question thats entirely off topic, Do you know how to make your site mobile friendly?.
I understand where your coming from, and I also simply appreciate your article. For what its worth I will tell all my friends about it, pretty imaginative. Bye for now.
I agree on a lot of the viewpoints you have written, but I feel the need to contemplate some aspects, and I seriously value your post.