Some Americans are looking forward to their golden years, especially those who are financially capable and desire to retire early but delay the process when they receive Social Security payments — something that’s happening more frequently these days, partly because of the stimulus package, soaring home values, and stock market boom.
The Washington Post recently published a report that found that the COVID-19 economy has provided “some of the strongest incentives to retire in modern history.” However, many retirees are also holding off on claiming their Social Security benefits to ensure larger monthly payments.
The Washington Post analyzed Bureau of Labour Statistics (BLS) data and discovered that the number of employees who filed for Social Security benefits during the 12 months that ended in September decreased by 5% compared to the same period a year earlier. The Social Security Administration reports the largest drop in almost 20 years.
The number of workers aged 65 to 69 who retired during the same period climbed 5% annually. Approximately 3 million retirees in the United States increased during the pandemic, which was double the number expected before the outbreaks.
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In the eyes of many experts, the trend can be attributed to three factors:
a. The generous stimulus package and unemployment insurance;
b. Rising stock markets and home values which have increased retirement funds
c. COVID-related restrictions force older adults to submit Social Security applications online rather than at a field office.
“Usually in economic downturns, we see an increased reliance on Social Security programs, and thought that’s what was going to be coming with the pandemic,” the University of Colorado at Denver economist Lauren Hersch Nicholas told the Washington Post.
“The claiming numbers just don’t show that at all.”
In addition, another reason for the increased number of retirees, especially, women, is due to the COVID-19 pandemic, which has adversely affected both health and the economy.
“Health concerns are unique to this recession and maybe playing a role, especially because workers ages 65 and above are less likely to be able to telework than younger workers,” said Wellesley College economist Courtney Coile to the Washington Post.
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Those who have a healthy bank account may be able to retire early, but it’s not so easy for those struggling financially. GOBankingRates reported earlier this year that only 36% of Americans who were not yet retired said their retirement savings would cover their needs after they retire, and about a third said they would delay retirement due to the pandemic.