Skip to comments.Forced to Early Social Security, Unemployed Pay a Steep Price
Posted on 06/11/2012 7:34:21 AM PDT by BenLurkin
PALM SPRINGS, Calif. This retirement oasis in the desert has long beckoned those who want to spin out their golden years playing golf and sitting by the pool in the arid sunshine.
But for Clare Keany, who turned 62 last fall and cannot find work, it feels more like a prison. Just a few miles from the gated estates of corporate chieftains and Hollywood stars, Ms. Keany lives in a tiny mobile home, barely getting by on little more than $1,082 a month from Social Security.
I would rather be functioning and having a job somewhere, said Ms. Keany, whose pixie haircut, trim build and crinkling smile suggest someone much younger than her years. I really dont enjoy living like this. Ive got too much to do still.
Even as most Americans are delaying retirement to bolster their savings accounts, the recession and its protracted aftermath have forced many older people who are out of work to draw Social Security much earlier than they had planned.
According to an analysis by Steve Goss, chief actuary for the Social Security Administration, about 200,000 more people filed initial claims in 2009 and 2010 than the agency had predicted before the recession and he said the trend most likely continued in 2011 and 2012, though that is harder to quantify. The most likely reason is joblessness.
(Excerpt) Read more at finance.yahoo.com ...
The BIG problem for those on a fixed income is that they are pinched by low interest rates and inflation. The SS or pension payments are buying less and less every month.
On the other hand, if the Dollar collapses - well within the bounds of possibility - then they will have gotten something, as opposed to the nothing the rest of us will get.
What astonishes me is the number of non english speaking social security and medicare/medicaid recipients that I see.
It is hard for me to believe these people ever had gainful employment and spent years paying into the system.
I am convinced the US has been engaged in a transfer of wealth to 3rd world immigrant moochers who are medically and financially bankrupt.
They were smart enough to figure out how to fleece the US entitlement programs and the hard working private sector Americans who keep this country going.
I just turned 62...I went back to school at age 54 to earn a degree and do physical therapy. I plan to keep working to age 70, God willing.
I own my situation...would like to be taking it easy at age 62. Didn't make all the right choices. Just thankful to have the privilege's to be an American.
At least she is collecting SOMEthing. I’m 44 and am confident I will get nothing for my 4plus decades of14.4% taxes to SS. Nothing.
Your age is an asset in Florida, what with the aged population stats in that State. You are commendable and an example of self sufficiency/taking responsibility for yourself. Perhaps that will register with a few of the younger Floridians. We can only hope so, even as the culture coarsens and respect for your elders dwindles into a pile of rainbow colored skittles.
Your age is an asset in Florida, what with the aged population stats in that State. You are commendable and an example of self sufficiency/taking responsibility for yourself. Perhaps that will register with a few of the younger Floridians. We can only hope so, even as the culture coarsens and respect for your elders dwindles into a pile of rainbow colored skittles. ... That’s a generic ‘your’
You cannot believe that a person could have a legal income in this country without speaking English? That’s stupid.
My great-grandfather came here, worked as a peddler, learned a trade, started a factory that eventually employed 1000 people working in shifts around the clock.
And never learned English.
This is usually the situation, parents or grand-parents come over legally in their 60’s work 18-24 months to qualify for SSI benefits and then take them. Perfectly legal.
There are a significant number of "press two for espanol" employees working at the government agencies that make sure that "their" people get qualified for the benefits that uncle sam is giving away.
There are also black, asian, and other minorities looking to make sure they get their share. Strangely, the average old white guy is held to a higher standard than the others.
Right, because most folks didn’t have their 401k hit the tank.
God, the judgmental types on FR just irritate the pee out of me sometimes.
If she really wants to work there are jobs to be had.
They may not be glamorous, but they can be had.
You have to look.
From age 62 to age 65, the individual in the article, Ms. Keany, can earn $14,640 per year without losing any benefits.
At age 65, she can earn $38,880 without a loss of benefits. Any reduction in benefits results in an increase in benefits after reaching full retirement. I assume any Social Security withholdings also are applied towards benefits.
At age 65 she will be Medicare eligible.
She should try to find a part-time job to augment her income, and not turn down anything.
If you don't find work, you are suck with the lower rate forever. But, the cash drawn will still put you ahead of the game. The break even point of the higher rate catching up with the lower rate is 11 - 13 years.
There is also the reality that once you start you are pretty much vested in the system and not as vulnerable to the possibility that congress will come up with a way to pull the rug out from under you.
An easier solution, and a reasonable one, would be to set up a co-op retirement community. Hopefully with a state waiver of many taxes and with some convenient services.
As long as it was planned ahead of time to be comprehensive, it could save a huge amount of money for everyone and avoid suffering for relatively poor retirees, as well as allow them to maximize what they have.
A big part of it should be that those who can work to support others do so, be it cooking, cleaning, greenhouse gardening for fresh food, assistance, crafts, and social services to keep things orderly and interact with government.
To rationalize it, set up a community scrip currency, which is a highly efficient controlled currency with fixed prices, that encourages commerce and discourages sloth. This also allows dollars to be concentrated for bulk purchases, especially medicines partially subsidized by the government.
Such a community would be gated for security, but also be adjacent to a city, with an idea that it could handle some “county services overflow”, like having a no-kill animal shelter, running a community recreation center for young children, including a nursery school, even an elementary school for children of indigent families.
Put it all together and it saves money, uses the resources of still active but poor, unemployed seniors, helps the greater community, keeping the seniors more socially involved, etc.
This is Hope and Change.
Poor Clare. I feel so bad for her.....especially considering that if she had only worked for $5 an hour for her 42 years in the work force, then her 13% SSIP contribution would actually be worth $467K or so, generating a little over $3K a month. Now, I’d wager she didn’t stay at $5 an hour for her entire working life.
Now she gets to sit around and realize how bad it is when you DEPEND on the government to act in your best interest. You see Clare, you are sucking on the crap you wanted. Yes, I am generalizing, but I think in the case of a yahoo article, that generalization is pretty safe.
At age 62, if she did not have additional savings building up, that is HER fault.
To be getting $1,082/mo SS, she or the husband she is drawing on, had a decent income during the working years.
Right, because most folks didnt have their 401k hit the tank.
God, the judgmental types on FR just irritate the pee out of me sometimes.
Ditto autumnraine's comment. Appears that TomGuy is an I-Got-Mine type of (Tom) guy to whom nothing bad has ever happened or ever will.
I’ve commented with you on this in the past.
Amazingly the topic is irrelevant. It’s just this knee jerk reaction to criticize and assume a position of superiority.
"It is hard for me to believe these people ever had gainful employment and spent years paying into the system."
"I am convinced the US has been engaged in a transfer of wealth to 3rd world immigrant moochers who are medically and financially bankrupt."
We allow people who immigrate here to bring their aging parents over. Any citizen or resident alien over 65 is eligible for Medicare.
Ms. Keany, who was born in Britain, was making $64,000 a year as an administrative manager for a boutique advertising agency in Santa Monica when the firm lost two of its biggest clients in one week. She has nearly three decades of experience in the United States. She has managed offices, arranged visits by foreign dignitaries, composed employee handbooks and finessed demanding bosses. She said she had also run errands for movie producers, organized home offices and coordinated the administrative details of a drug study.
they had these in the ‘60’s.......they called them communes.....hippie
You are so right wiggen. It’s sad really. Those of us in the real world understand (if we didn’t before)... IT CAN HAPPEN TO YOU.
Yep, I learned the hard way that even after 20 years of a very successful insurance field career... the proverbial poop can hit the fan and everything you saved for is now eat up in keeping your family in a home.
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