Early Retirements Are Way Up

The older folks who have seen some of their retirement savings disappear may just decide to hang up the working life and retire on the government's dime:

Instead of seeing older workers staying on the job longer as the economy has worsened, the Social Security system is reporting a major surge in early retirement claims that could have implications for the financial security of millions of baby boomers.

Since the current federal fiscal year began Oct. 1, claims have been running 25% ahead of last year, compared with the 15% increase that had been projected as the post-World War II generation reaches eligibility for early retirement, according to Stephen C. Goss, chief actuary for the Social Security Administration.

Many of the additional retirements are probably laid-off workers who are claiming Social Security early, despite reduced benefits, because they are under immediate financial pressure, Goss and other analysts believe.

There are other reasons as well. I'm personally aware of one situation in which an employee, facing a reduction in pay and benefits due to budget cuts, is electing to take early retirement from one job and will look for something else to do and collect from both companies. The first company will continue to pay and will do so without the benefit of that employee's labor.

She may end up making out like a bandit thanks to this downturn.