Monday, September 28, 2009

Rapidly increasing use by unemployed baby boomers: early retirement can cause almost immediate Social Security operating deficit

Stephen Ohlemacher of the AP has a story, reproduced on Walletpop today on AOL, “Early retirements strain social security,” link here.

Previously this blog has reported the likelihood that some naysayers have predicted that Social Security will run a deficit in 2010, and add to the federal deficit. Now it’s real. A major reason is that the number of people taking “early retirement” at age 62 has risen sharply, largely because of recession, which may cause rapidly increasing unemployment for older workers in proportion to youngsters. Another factor is the increase in disability claims.

There aren’t any plans to reduce benefits, but it’s obvious that cutting back on early retirement could gain steam as a proposal.

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