Another story is out in the Wall Street Journal about the “claim and suspend” measure of Social Security benefits for retirees. The author brings up the fact that a retiree, who is receiving Social Security benefits, can suspend their benefits and return to the work force, and in the meantime, their future benefit cap will rise, as though they had not yet filed for benefits.
Interestingly, the article somehow tries to tie the country’s current economic condition to the idea that retirees are returning to the workforce. While the text and the message of the article hold true and is generally good information, I seriously doubt that the recession is forcing retired folks back into the workforce. With more unemployed workers competing for fewer jobs, it seems to me that there is little incentive for a retiree, who is already drawing and living on Social Security benefits, to temporarily suspend those benefits for an opportunity to jump back into the hunt.
Conversely, if the economy were booming and jobs were plentiful, wages were good and hope was on the rise (as opposed to our being mired in a recession), then I would expect Social Security benefit recipients to at least consider whether they could make a fresh start in the hopes of finding lasting, high-paying employment.
Again, the point of the Wall Street Journal article is true. If a retiree takes a few years off of retirement to rejoin the workforce, then while the retiree is working, his or her monthly benefit amount will increase as though the retiree never received benefits in the first place. That being said, it’s up to each retiree to decide what’s best in the long run.
#1 by jeff at June 8th, 2009
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This is really cool!