A perfect storm continues to gather. It’s just not the one everyone saw building on the horizon in 2005. Only a few years ago we feared the knowledge gap created by the departure of 78 million boomers from the workplace, the bankruptcy of social security and Medicare and a skilled talent shortage that would cramp economic growth. I don’t believe the storm has lessened by any means but I think the nature of the storm has changed.
Since October 1, social security claims are up 25%. While boomers intended to stay in the workplace, the challenges of fulfilling that vision can be demoralizing. In the face of age bias, exhausted unemployment funds, evaporating home equity, elimination of seniority protections and flagging stock market accounts, many who are eligible for early benefits are giving up and claiming social security. Don’t confuse claiming social security as retiring. These workers can keep working and would if that seemed practical.
Withdrawing social security at 62, the earliest eligibility date, significantly decreases the payout. Although good news long-term for the solvency of the social security program, in the short-run, more claimants represent budget issues at a time when dollars are at a premium. Additionally, the ramifications of diminished payouts over a long period of time are yet to be clearly understood. Certainly women who outlive their spouses can be seriously affected as survivor benefits decrease the original social security payment even further. Statistically, we also know that those who begin to draw from their social security accounts are unlikely to return to the workplace full-time.
I know that employers are trying to creatively cut expenses and keep workers on the job and I urge them to aggressively innovate in this area. I urge individuals not to give up. I understand the frustration with today’s workplace but the work world needs our experience, our relationship orientation, our problem-solving practicality and even our jaded Dilbert-like questioning of the status quo.
Filed under: Workforce Transitions Issues and Solutions | Tagged: Medicare, retirement, social security, talent shortage
