Unemployed Seniors draining Social Security

Chris Wodke

www.summittrainingpublications.com

There are a lot of Seniors among the 9.8% unemployed in this country.   It is tough to find a job if you are over 50 even in a good economy.  Many unemployed Seniors are choosing to apply for Social Security benefits and this is causing the system to pay out more money than it is taking in over the next two years.

Due to the high unemployment many Seniors are retiring earlier than expected causing applications for benefits to be 23 % higher than a year ago.  Many Seniors had not counted on retiring but have been laid off and cannot find work.

This situation could become even worse. 55% of workers 60 to 64 are still in the work force. Hits to the stock market are keeping Seniors in the workforce.  Many want to wait until they are 67 to start collecting benefits to get bigger checks. However many are being forced to start collecting early due to layoffs and inability to find a job.

The system is already hurting due to the drop in payroll taxes being paid because of high jobless numbers. If the recession continues, more Seniors may opt to start drawing benefits when they can’t find work, further straining the system.

 

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