Jobless turn to Social Security

[somone]

http://www.daytondailynews.com/news/ohio-news/jobless-turn-to-social-security--1040440.html

Jobless turn to Social Security
Unemployed workers are retiring, some early, because they’ve used up other benefits.
By Randy Tucker, Staff Writer

DAYTON — Applications for Social Security benefits have jumped dramatically in Ohio since the recession began as more displaced workers seek benefits early to meet the financial pressures brought on by unemployment.

Applications for retirement benefits rose 12 percent from federal fiscal years 2007 to 2010, while applications for disability benefits were up 23 percent during the same period, according to numbers from the Social Security Administration.

Many applicants were forced to seek benefits before reaching their full retirement age because of the state unemployment rate hovering around 10 percent. Those who collect benefits early receive smaller monthly payments than those who receive benefits at 65 or older. But for many people who have exhausted retirement savings and unemployment compensation, Social Security is their only option for regular income. “Without Social Security, a lot of the people I work with would be in much, much worse condition,” said Vickie Carraher, who manages senior services for the City of Kettering.

Many disabled people who previously were working have also turned to Social Security as a safety net after losing jobs. “We’ve seen a huge increase in applications for disability benefits over the past two years,” said Theresa Busher, a spokeswoman for the Social Security Administration’s Dayton office. “It can be very difficult for disabled workers to find new employment.”

[TBF]

1. Don't worry - Obama has a plan to put an end to that. nt

[old mark]

2. Disabled workers in their 50's find a job? Not a chance! Problem is that many times

being accepted for disability takes many turndowns and appeals. I knew one woman with Lupus who appealed for 5 years till she won. She had nothing, was living on a friends living room couch for several years.


mark

[On the Road]

3. I Have Been Planning to Hold Out Until 70

to collect Social Security since the monthly check would be so much larger. But I did some simple projections, and collecting earlier is not that bad a deal. Unless you live into your 90s, you collect the same or more total benefits by starting with a lower check at age 62.

[eallen]

5. Unless you're wanting to maximize your estate for your heirs, it's best to wait.

People so quickly leap to calculating what maximizes their expected total, that they forget the simple fact that money does you no good once you're dead. And running out of money before you die is terribly hard. Even coming close to that is difficult: the 85 year-old man who can't live on his meager social security check and whose other savings will last only another five years is a miserable fellow. His misery is not lessened much by the significant probability that he won't make it to 90. There's also a significant probability that he will make it to 95, or a 100. And what then? That's a bad age to be sleeping on friends' couches.

With some exceptions, people should worry less about maximizing their estate than about guaranteeing they don't run out of money before they run out of time. Waiting to collect maximum social security benefit is a very good way to do that. And unlike dollars collected earlier, they aren't subject to the foibles of investment, to the possibility of adverse judgment, or to being stolen by con or crook.

Yeah, if you die younger than you anticipate, it means the social security fund rather than your heirs get the financial benefit to your dying younger. But that can be a good trade for secure income in the happy case that you live longer than you anticipate.

:hippie:

[wishlist]

8. My husband nearly died from pulmonary embolisms just weeks before 62

He didn't know he had a genetic blood clotting factor. But after his close call, he was determined to start early SS to get back some of his contributions. Two of our friends died after age 62 but never drew any and his brother waited until age 66 and then drew benefits only 9 months before his unexpected death. Three of my cousins thought they were in good health but suddenly died before age 62. In 6 years my husband has saved all his SS and built up a sizeable nest egg since he continued working part time. He locked in a 5% interest rate good for a couple more years so it will continue building up. I expect to apply for mine at 62 also instead of gambling on extreme longevity.

[On the Road]

10. Yes, That's Why I am Planning to Wait Until 70

A lot of my relatives lived into their 90s, and I don't want to outlive my savings.

But I was surprised that the crossover point was so high -- if you only reach the US life expectency, you actually come out better by taking it early.

[madrchsod]

4. i retired at 62. one more year and i`ll have medicare.

it`s not much but it pays the mortgage

[Skink]

6. It is amazing that you have to wait another year for medicare.

[Paper Roses]

7. On the suggestion of our accountant at the time, my husband

applied for SS at age 62 and I did the same. He died after only a few years of monthly checks. Never began to get back what was put in. I applied even though the check is a little less to apply at 62. I always fear the unknown. Rather less now than none later.

It is now 3X as difficult. My husband is dead, and I was laid off.
Now it is just one monthly check. Just my SS check.

I am so glad we both applied early. Something is better than nothing. Uncle Sam gets it all if you go
soon after starting benefits. And yes, we paid for something all our working lives. I expected my husband to be around a lot longer and our checks would sustain us. The situation is tenuous at best for me. I'd be madder than hell If I knew I was going to die soon and the government would get all I put in too.

[Hawkeye-X]

9. Dad applied for SS last year at age 62

He survived lymphoma, viral meningitis and he's still working every day. He got approved for SS disability, he will get his full benefits when he's 66 (3 more years) - he just got Medicare this month so instead of paying an arm and a leg for BC/BS (which cost him thousands of dollars in treatment for his lymphoma, including SCT)

Hawkeye-X