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COVID-19 Economy,one of the Biggest Incentives to Retire in Modern History

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Because of the pandemic-era combination of stimulus payouts, growing housing values, and stock-market gains, confident Americans who have the financial capacity (and want) to retire early while delaying their Social Security benefits are becoming more prevalent these days.

Working retirees almost doubled

Many seniors are postponing their Social Security benefits to obtain higher monthly checks simultaneously. According to a WaPo analysis of data from the Bureau of Labor Statistics, the number of workers who applied for Social Security benefits in the year ended in September was down 5% from the same period the previous year.

The  Social Security Administration shared this the most significant drop in nearly two decades. During the same period, the number of retirees aged 65 to 69 climbed by 5% year over year. In addition, about 3 million more retirees in the United States joined the workforce during the pandemic, almost twice as many as would have been predicted before the outbreak, Unica News reported. 

Economic, health uncertainties prompt more retirements

Many experts believe three factors have driven the trend of great federal stimulus and unemployment insurance payments, the higher retirement funds due to stock market gains and rising home values.  Seniors are now required to apply for Social Security payments online rather than in person

Lauren Hersch Nicholas, an economist at the University of Colorado at Denver, said, They usually see higher reliance on Social Security services in economic downturns and assume that’s what would be coming with the epidemic, Yahoo Finance posted. 

The nature of the COVID-19 pandemic which has contributed to both economic and health uncertainties, is another factor pushing more retirements, especially among women. Wellesley College economist Courtney Coile noted that health problems are unique to this recession and may play a role, especially because workers aged 65 and over are less likely than younger workers to telework.

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