A new study conducted by Boston College’s Center for Retirement Research has revealed that the likelihood of Americans aged fifty-five and higher leaving the workforce over the course of a year climbed by 50 percent—a 7.6 percent jump from before the start of the nearly two-year-long coronavirus pandemic.   

The groups that were the most impacted in the eye-opening findings included women, Asian-Americans, those without college degrees, and workers without telecommuting options. 

Moreover, the study discovered that “despite migrating out of the current workforce, many of those Americans aren’t subsequently tapping into their Social Security retirement benefits. . . . It noted that actual retirement likelihood increased only by 1 percentage point, and that doing so was primarily among individuals age seventy and older,” according to personal finance writer Kelsey Ramirez at Fox Business.

“This discrepancy between leaving work and retirement can be interpreted in two ways,” according to the study. “Some older individuals may intend to return to work once restrictions ease and vaccination makes doing so safer. Others may not intend to return to the labor force, but are using other sources of income—such as extended unemployment insurance or federal stimulus payments—to postpone claiming Social Security.” 

Just last month, The Washington Post reported similar findings in which more Americans who are leaving the workforce are holding off on collecting Social Security benefits because they understand that the longer they wait, they will likely see larger monthly payouts in the future. 

“For better-off Americans, the pandemic economy created some of the strongest incentives to retire in modern history, with generous federal stimulus, incredible market gains, skyrocketing home values and health concerns drawing many Americans into early retirement,” according to The Washington Post. But also, many of these retirees “opted to put off claiming Social Security benefits.” 

Pays to Wait 

The AARP claims that the proof is in the numbers.  

“Of course, if you’re ailing and not likely to live many years in retirement, you’re better off taking Social Security benefits early,” according to the AARP website. “But if you’re healthy and have other resources to live off, it pays to wait. Your monthly payment will be 76 percent higher if you wait to start benefits at seventy rather than sixty-two, the earliest possible age.” 

The website suggested that by staying at a job longer or finding part-time work in retirement, a person “can earn a paycheck that can help you postpone drawing on Social Security benefits early.” 

Not All Retirees Can Wait   

However, Maurie Backman, a personal finance writer for The Motley Fool, noted that some retirees just aren’t in a financial position to wait past sixty-two before claiming.  

“Claiming Social Security at age seventy may not be the right move for everyone. And it may not even be possible for you,” Backman wrote in her analysis.  

“If you lose your job in your mid-sixties, for example, and can’t get rehired, you may have to sign up for benefits to keep up with your living costs,” Backman cautioned. “But if you have the option to delay your filing until the age of seventy, it could very much benefit you financially to take it.” 

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn. 

 Image: Reuters