Published in the High Desert Advocate April 9, 2021 Edition.
John Grimaldi
Older Seniors are Fast Growing Members of the American Workforce
They are staying on the job longer and happier
Today’s seniors are stronger than ever. That’s not wishful thinking, it’s a fact with substantial proof. For one thing, the senior citizen segment of the U.S. workforce has been expanding rapidly for some time, according to the Bureau of Labor Statistics. To be more specific, BLS data shows that the 55-plus segment of the U.S. labor force stood at 11.6% in 1993 and by 2024 that number will grow to nearly 25%.
“What’s more striking is that the Bureau expects that men and women 65 to 75 years of age and older are leading the pack of seniors who want to keep working. In fact, the Census Bureau reported not long ago that as many as five percent of Americans in the 85 and up age range have jobs,” says Rebecca Weber, CEO of the senior advocacy organization, the Association of Mature American Citizens [AMAC].
Not so surprising, she adds, considering that the country’s 90-plus population has tripled over the past 30 years and will grow to more than 7.6 million nonagenarians by the year 2050.
One such member of the U.S. workforce is actor William Shatner who turned 90 just last week. He’s still working and doesn’t seem likely to retire anytime soon. Shatner has a new movie coming out soon. It’s called Senior Moment and features a retired NASA test pilot. The Chicago Sun Times called it “geriatric rom-com.”
Shatner is not ready to go gently into the night, as he told Entertainment Tonight in a recent interview, “I’d like to be around when the science fiction of today becomes science fact.”
AMAC CEO Weber explains that Shatner is not very different from anyof the new breed of busy old timers. “Consider his schedule. He recently cut two albums, he launched a new podcast, shot a new show, The Unexplained, for the History Channel and is out there plugging his new movie, despite the limitations imposed during the pandemic.”
But Weber notes that the Star Trek hero, James Tiberius Kirk, is not the only old timer who is keeping his “chin up” while riding out the COVID pandemic; senior citizens in general are showing the world what resilience is all about.
She cites two studies that both came to the same conclusion: the elderly participants were able to remain in a good mood despite the threat of the pandemic, according to the findings of one of the studies. The other proved that older age was associated with less concern about the threat of COVID and better emotional well-being.
Will My Widow’s Benefit Replace My Own SS?
Dear Rusty: My husband is 76, retired for 4 years, and receiving Social Security. I am only 59 and still working. We are both in good health and I’d like to think we still have many years to enjoy retirement. My question: Is it true that if I start SS at 62, I can switch to my husband’s SS when he passes? If this is true (and his amount is slightly higher than my FRA amount), wouldn’t it make sense for me to begin collecting at 62? Signed: Younger Spouse
Dear Younger Spouse: Yes, it is true that if you start your reduced personal SS benefit at age 62, and your husband (collecting a benefit higher than your own) predeceases you, you can switch to his higher benefit amount. But there are some other factors which come into play when dealing with survivor benefits, especially with an age difference:
• You must be at least 60 years old to claim your survivor benefit (or 50 if you are disabled).
• Your survivor benefit will be reduced if you haven’t yet reached your own full retirement age (FRA) when you claim it. The reduction is 4.75% for each full year earlier than your FRA that you claim the survivor benefit.
• You do not need to take your survivor benefit immediately upon your husband’s death. Your survivor benefit as your husband’s widow reaches maximum at your FRA, and you can choose to delay claiming your widow’s benefit until you reach your FRA (to get the maximum amount).
• If you claim any SS benefit before your FRA (your own or your survivor benefit), and you are working, you’ll be subject to Social Security’s “earnings test” which limits how much you can earn before SS takes back some of your benefits.
Considering the above, if your eventual benefit as your husband’s widow will be the highest benefit you will be entitled to, then claiming your personal SS benefit at age 62 may be a prudent strategy. It allows you to collect your own benefit earlier (albeit reduced) until your higher survivor benefit kicks in to replace the smaller amount. However, your plans for working prior to your full retirement age are key to deciding if you should claim benefits earlier. If you exceed the earnings limit ($18,960 for 2021), SS will take away some of your benefits, which could mean you go without benefits until they recover what you owe. Indeed, if your earnings are high enough, you may find that you would get no SS benefits because the amount you owe for exceeding the earnings limit would completely offset your Social Security benefit.
So, as you can see, if you are working with a high income, the earnings limit might imply that waiting until your FRA to claim any SS benefit is the smartest move. But if you don’t work after you claim SS then taking your own benefit early and later switching to your higher widow’s benefit at or after your FRA would be a sound choice.
