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Taking Early Benefits Not A Good Idea

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By ADON TAFT

Published: February 4, 2008

Estimates are that every hour nearly 400 Baby Boomers are turning 62 years of age and therefore becoming eligible to apply for early Social Security retirement benefits. In the long run, that's obviously not a good omen for a Social Security system already faced with bankruptcy by the year 2041.
But for most of those "newly old" folks, taking early Social Security retirement benefits would not be a good idea anyway. That's the opinion of attorney Joseph Matthews who, with his mother Dorothy Matthews Berman, is the author of "Social Security, Medicare & Government Pensions." The 13th edition of the NOLO Publications' $29.99 paperback copy of this standard guide is just out.
If those turning 62 take early Social Security and continue to work, Matthews notes, not only would their benefit be permanently lowered by 25 percent of what it would be at the regular retirement age of 66 but for every $2 they earn more than $13,560 a year during 2008 their benefit would be reduced by $1. That ceiling usually goes up each year.
Nevertheless, he adds, it might be worth taking that step under some circumstances: if you need the money to meet current expenses; if your spouse already is receiving retirement benefits; if you have dependent children; if you have a short life expectancy; or if you have a place to invest that money in a way that would earn more over time than the amount by which your benefit would be reduced.
Matthews covers all the basics of the various topics in plain, easy to understand language. He also gives sources for pursuing benefits or appealing government agency decisions denying those benefits.
Of course, the federal government already is spending more than $1 trillion a year on Social Security and Medicare. Because of Medicare and other factors, elders often are accused of being the cause of the alarming rise in health care costs.
A report from the International Longevity Center USA cited in a recent edition of the American Society on Aging's publication, "Aging Today," found that such ideas are way off base. Actually, according to the report called "Myths of the High Medical Cost of Old Age and Dying," "only a fraction of older adults receive costly care at the end of life. In fact, they are less likely to receive aggressive care when dying than other age groups."
Led by Cynthia X. Pan, medical director of the Queens Region of Hospice Care Network and adjunct associate professor of geriatrics at Mount Sinai School of Medicine in New York City, the researchers found that aging accounts for no more than 7 percent of healthcare expenditures. That may be attributed, at least in part, to the fact that the health status of older Americans is improving and their longer healthy life is having little impact on healthcare expenditures.
The researchers found that not only do only 3 percent of Medicare beneficiaries incur very high costs from end-of-life care but, compared to patients under the age of 50, they usually receive less aggressive procedures.
Most of the public, according to the report, does not understand that Medicare does not pay for long term care. That usually is a private expense although some elderly wind up in nursing homes under Medicaid, which is a joint federal and state program.
Nevertheless, it seems strange to me that the federal government spends $2.6 billion a year for research and treatment of HIV/AIDS which affects 1 million men and women, most often younger people, in this country compared to only $645 million last year (down $7 million from the year before) for research and treatment of Alzheimer's disease which affects 4.5 million Americans today and that number is expected to reach 13.2 million by 2050.
Alzheimer's most often affects older Americans and Dr. Richard J. Hodes, director of the National Institute on Aging, testifying before Congress in 2004, noted that most of the victims of the disease are not cared for in institutions but usually at home by relatives at an overall cost then in excess of $100 billion a year.

If you have questions about any issues connected with aging, except medical conditions, please write to Life to the Fullest, Hernando Today, 15299 Cortez Blvd., Brooksville, Fla. 34613, or send e-mail to adontaft@yahoo.com. Please include your name and address.

Adon Taft is a resident of Brooksville.

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TOPICS IN THIS ARTICLE

security retirement benefits • social security retirement • international longevity center • social security and medicare • social security system • dorothy matthews berman • government pensions • good omen • agency decisions • baby boomers • joseph matthews • retirement age • paperback copy • alarming rise • health care costs • center usa • old folks • dependent children • government agency • life expectancy

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