Record job losses and an increase in early retirement claims from laid-off seniors will cause Social Security to hand out more benefits than it collects in taxes over the next two years- for the first time since the 1980s. The rise in fillings will not affect payments to retirees because Social Security has accumulated surpluses from past years, but the increase will add to the overall federal deficit.
The recession has left many laid off seniors with no where to turn but Social Security. This year, there were 23% more applications for retirement benefits than last year, and disability claims have increased by about 20%.
Although unemployment and a tough job market have forced more people into early retirement, statistics show that there has actually been a steady increase of U.S. residents in their 60s who are either working or looking for work, because they simply can’t afford to retire. This year, more than 55% of people between the age of 60 and 64 are still working, compared to about 46% a decade ago, according to the Bureau of Labor Statistics.
Retirement Planner: http://www.ssa.gov/retire2/retirechart.htm
http://www.chicagotribune.com/news/chi-trib-social-security-0928sep28,0,4831486.story
Tags: benefits, consumer, economy, retirement, social security
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