Seniors Forced Into Early Retirement By Acute Job Crisis
Hawaii is just one of many states where seniors are being forced to take early retirement due to the acute lack of jobs.
The Honolulu Advertiser reports:
Older Hawai'i workers who have lost jobs in the recession are exhausting unemployment benefits, spending down their nest eggs and turning to Social Security early in a trend that could threaten their long-term financial security and shows how tough the job market is for seniors.
New Social Security figures show that the number of Hawai'i residents who signed up for early retirement last year — in many cases after being unable to find new jobs — was up 36 percent from 2005. Meanwhile, state figures show 22 percent of all claimants for unemployment benefits are over 55.
Barbara Kim Stanton, state director of AARP Hawai'i, said older workers are being hit particularly hard in the recession and are struggling to compete with younger workers for fewer jobs. She said the downturn is forcing many to make tough choices, such as opting to draw Social Security early, which means they'll get smaller monthly checks, reduced by about 25 percent.
"They're compromising their retirement," Stanton said.
The financial pressures on older workers could have widespread implications for the graying population of baby boomers who are living longer than their parents and in some cases are ill-prepared for retirement because they didn't save enough or their savings shrunk in the financial meltdown.
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