Thursday, November 18, 2021

The Great Resignation Doesn't Mean More on Social Security

A few weeks ago, the Washington Post ran this article, The latest twist in the ‘Great Resignation’: Retiring but delaying Social Security

For better-off Americans, the pandemic economy created some of the strongest incentives to retire in modern history, with generous federal stimulus, incredible market gains, skyrocketing home values and health concerns drawing many Americans into early retirement.

The surprising twist? Many of these retirees also opted to put off claiming Social Security benefits, an exclusive Washington Post analysis shows. By delaying their benefits, these retirees can expect to collect higher monthly checks in the future.
The data in the article show retirements up about 5% but Social Security Retirement apps down about the same for the same time period.  Do we know what is going on?
 
America’s retiree population grew by about 3 million during the pandemic, about double what would have been expected given pre-pandemic trends, which has been previously reported. But the surprising surge in older Americans delaying Social Security upon retirement is another example of a number of unusual trends roiling the American labor market. Most notably, workers of all ages are quitting jobs in record numbers, in what has been dubbed the “Great Resignation.”
But why is this happening? Perhaps it's the "generous federal stimulus and unemployment insurance payments that enabled retirees to make ends meet in the short term; soaring stock and home prices that fattened retirement accounts; and pandemic-related restrictions at Social Security field offices nationwide that forced seniors to apply online."  We know that the pandemic is a great risk to all of us, but older workers can be even more vulnerable.  Once we are out of the pandemic, it will be interesting to see if this trend continues or reverses.

https://lawprofessors.typepad.com/elder_law/2021/11/the-great-resignation-doesnt-mean-more-on-social-security.html

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