Why? My guess is that if they were less than Full Retirement Age, they were urged by the FO to file a disability claim, and were granted by either the DDS due to adverse vocational factors or by an ALJ eventually. So they are still on disability roles until FRA.
As always "it is the economy,stupid " Other investments have failed and living on only RIB benefits is a very stark reality. In addition the financial literature has been promoting the benefits of waiting and the probability of extended life spans.
I think A8:23 is right as to the pundits are now promoting the benefits of waiting. That advice is only beneficial to those whose spouse(widow(er)) will draw after his/her death on his/her record. In other words, a person without a spouse to consider is still better off taking early retirement -- more money in hand until about age 80. Who can say for sure they'll live to 80? And, if they die early, there is no "pot of gold" for the estate (unless there is a spouse eligible for widow(er) benefits). It's not like a 401K which can be inherited by someone else. My opinion is that SSA's PR machine is promoting waiting, to help the trust funds. But, that may well disadvantage an individual claimant.
I think the break even point is about 77 and a lot of people are planning on living beyond that at this point. The other factor is the last years of a career are often the top earning years, so if they can earn $100,000.00 or $50,000.00 for a couple of more years, why not? Not all people applying for and/or receiving retirement benefits are in the bottom 25% of the economic mass.
The underlying cause is people are working longer. I suspect the number if beneficiaries who could get benefits at age 62 (i.e., they are not working or earning less than the earnings limit) but choose not to file for benefits is an insignificant number. The advantage of getting higher SS benefits may be a factor in delaying retirement in some cases, but as another poster above said, it's the economy, stupid. I also think we will see a pattern with Boomers working until a later age. The amount of SS benefit and the reduction factor is a very minor issue in that pattern.
This would be a more useful study if we could see the number of beneficiaries who have reached full retirement age and chose not to take benefits. That decision would be solely driven by the amount of the benefit.
6 comments:
Why? My guess is that if they were less than Full Retirement Age, they were urged by the FO to file a disability claim, and were granted by either the DDS due to adverse vocational factors or by an ALJ eventually. So they are still on disability roles until FRA.
From the sheet,we can see the claiming declines,they are still on disability roles until FRA.
As always "it is the economy,stupid " Other investments have failed and living on only RIB benefits is a very stark reality. In addition the financial literature has been promoting the benefits of waiting and the probability of extended life spans.
I think A8:23 is right as to the pundits are now promoting the benefits of waiting. That advice is only beneficial to those whose spouse(widow(er)) will draw after his/her death on his/her record. In other words, a person without a spouse to consider is still better off taking early retirement -- more money in hand until about age 80. Who can say for sure they'll live to 80? And, if they die early, there is no "pot of gold" for the estate (unless there is a spouse eligible for widow(er) benefits). It's not like a 401K which can be inherited by someone else. My opinion is that SSA's PR machine is promoting waiting, to help the trust funds. But, that may well disadvantage an individual claimant.
I think the break even point is about 77 and a lot of people are planning on living beyond that at this point. The other factor is the last years of a career are often the top earning years, so if they can earn $100,000.00 or $50,000.00 for a couple of more years, why not? Not all people applying for and/or receiving retirement benefits are in the bottom 25% of the economic mass.
The underlying cause is people are working longer. I suspect the number if beneficiaries who could get benefits at age 62 (i.e., they are not working or earning less than the earnings limit) but choose not to file for benefits is an insignificant number. The advantage of getting higher SS benefits may be a factor in delaying retirement in some cases, but as another poster above said, it's the economy, stupid. I also think we will see a pattern with Boomers working until a later age. The amount of SS benefit and the reduction factor is a very minor issue in that pattern.
This would be a more useful study if we could see the number of beneficiaries who have reached full retirement age and chose not to take benefits. That decision would be solely driven by the amount of the benefit.
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