Monday, May 10, 2010

More seniors start social security at 62 after being forced to "retire" by corporate America during the "early buyout" fad

The AARP Bulletin for May 2010 has, on p 14, has a sobering article by Carol Fleck, “Forced to Retire”, link here.

The trend of corporations (which started to pick up as early as the late 1980s) to encourage workers in their 50s or early 60s to take buyouts and early retirement has led to many more people starting social security early, at age 62. Right now. 42% of men and 48% of women do so, but that can permanently reduce benefits by about 25% a month, and with longer lifespans, the math of all this increases the chance of many people outliving their savings.

Older workers have gotten “creative” with second careers, and this article discusses one woman who bought a franchise when in her late 50s but economic weakness forced her to give it up and “retire” when she was 63. A number of retirees have tended to be drawn to “lifestyle” oriented sales careers like real estate, but much of this has been very vulnerable to recession.

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