Millions Forced to Retire Early With Partial Benefits

One of the most assaulting effects of theIn 2008, 58 per cent of people who applied for
recession has been the number of 'almost there'early retirement benefits were men, compared to
retirees who have been forced to stop workingthe current 72 per cent for 2009. An alarming
earlier than planned. As the United Statesincrease for women was seen as well as 64.2 per
continues to deal with their economic uncertainty,cent filed in 2008 compared to 74.7 per cent in
many people in the older age brackets that hold2009. The Social Security Administration also
20 and 30 years worth of work experiencepointed out that if people claimed full benefits at
remain jobless as their professional industries66, they would get 75 per cent of the check if
simply are not hiring. With the high 9.5 per centthey applied four years early, but if they waited
unemployment rate, recently extended socialuntil they turned 70, they would be entitled to 32
federal benefits as well as the usualper cent more. However, most have been forced
unemployment insurance that is being paid out liketo either apply early or, if they need more money
clockwork, the country is already underthan their checks, to continue working well
tremendous financial strain. Factoring in the almostbeyond their retirement years to pay the bills.
three million Americans who have been forced toThe Social Security program also forecast that
apply for early retirement, this leaves the U.S. in athe program would return to the black, as benefit
bit of an economically compromised position as itpayments will exceed tax collections into 2015.
is currently experiencing reduced tax collections asThey also point out that by 2015, they are
people cannot afford to pay.expecting more than 78 million baby boomers to
The Social Security Administration has seen astart retiring. With so little money coming in and
record amount of applications for benefits. Theyso much going out, it's no wonder the country
say that 2.74 million Americans have applied forremains in such economic turmoil.
Social Security in 2009 before their full retirementIt may be a good idea for Canadians to take note
age, which is more than any other year in history.of the current American situation and not allow
It just happens this record number of applicationsour own financial circumstances to become
came the same year the retirement age wasinflated and out of control. Setting aside some
bumped up from 65 to 66, which means thatmoney in an RRSP is simply smart and will leave
most of the applicants are having to make endsyou better prepared for the future.
meet on reduced benefits.