More people collect Social Security early

May 7, 2012

For the first time in history, Social Security had to pay out more in benefits than it took in for payroll taxes, reports Fox Business. One of the reasons for this deterioration in the Social Security fund is the unexpected increase in the number of people filing for early benefits.

Why are more people filing for early Social Security benefits? The prolonged recession—and the double-digit unemployment rates—has caused more people than usual to take this step.

Only 38.3 percent of those reaching the age of 62, the earliest age that you can claim benefits, would have claimed benefits if the unemployment rate had remained at 4. 9 percent, according to the Center for Retirement’s research.

Because of the recession, many older workers are getting laid off and are forced to start their Social Security earlier than they had originally planned. Unfortunately, they are facing long-term consequences.

The government pays you a bonus of eight percent for each year that you can delay filing for benefits. For example, for an individual whose SS check is $1,000 at age 65, it will go up to $1320 at age 70—almost one third more.

If you or someone you know needs help with Social Security Disability benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.