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BUSINESS Tuesday 11 June 2019
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Liz Weston: Don’t believe these Social Security myths

By LIZ WESTON likely to live, according to rity application. To match
NerdWallet the Stanford Center on that return, you’d have
Associated Press Longevity. A 65-year-old to take a lot of risk. Even
Researchers tell us that man today can expect to the most prudent investor
most people would be bet- live to 84, according to the can get shellacked by a
ter off waiting to claim So- Social Security Administra- bear market or real estate
cial Security benefits. Yet tion. A 65-year-old woman downturn.
most people file early. can expect to live to 86.5. ‘I HAVE TO CLAIM SOCIAL
More than half apply for Couples who are 65 today SECURITY AS SOON AS I
Social Security before they stand a 50% chance of QUIT WORKING’
reach full retirement age, having one spouse live to You don’t have to start So-
which is currently 66 and 92, according to the Soci- cial Security when you stop
rising to 67 for people born ety of Actuaries. Life expec- working, or vice versa. Fi-
in 1960 and later. More tancies are even longer for nancial planners often sug-
than 30% apply as soon as those now in their mid-50s. gest people tap their retire-
they can — at age 62. Only One in two women and ment funds or other savings
about one in 25 applicants one in three men will live if that allows them to delay
waits until age 70, when past 90, the actuaries say. their applications.
monthly benefits max out. This April 2017, file photo provided by NerdWallet shows Liz Even if you’re right about Also, you don’t have to wait
Some people have little Weston, a columnist for personal finance website NerdWallet. having a shorter life expec- until 70 to get substantial
choice, of course. They com. tancy, though, claiming returns. Delaying four years,
may have no savings and Associated Press early could shortchange from 62 to 66, can translate
no job. Others have better TAKE SOCIAL SECURITY’ Mason University in Arling- your mate. Married couples into a 33% sustainable, an-
options than applying ear- Social Security benefits in- ton, Virginia, and a faculty will lose one of their checks nual increase in your stan-
ly, but don’t realize it. crease by about 7% each research fellow at the Na- when the first spouse dies, dard of living, Slavov says.
That’s due in part to the year between 62 and your tional Bureau of Economic which can cause a serious ‘I NEED TO APPLY BEFORE
many, many myths sur- full retirement age , and by Research. drop in income. The survi- SOCIAL SECURITY GOES
rounding Social Security 8% each year between full Social Security also pro- vor will get the larger of the BANKRUPT’
— and people’s tendency retirement age and 70. This vides insurance against two checks the couple was Social Security is not “go-
to think they know more actuarial adjustment aims longevity. People who live receiving. That gives the ing bankrupt.” If Congress
about this program than to ensure that people who longer than expected can higher earner in a couple doesn’t act, in 2035 the sys-
they actually do. A 2013 opt for larger checks for a run out of savings and wind — the one whose check tem will be able to pay only
survey by Financial En- shorter period don’t get less up depending mostly or will be the largest — a about 80% of promised
gines found that 77% of than those who get smaller even entirely on Social Se- strong incentive to delay so benefits — and 80% clearly
pre-retirees felt confident checks for longer periods. curity. That alone is a good that the survivor’s benefit is is not the same as zero. If
about their Social Security But longer life expectan- reason for most people to larger. and when Congress does
knowledge, but 95% could cies, current low interest delay their applications. ‘IF I CLAIM BENEFITS EAR- get around to fixing Social
not correctly answer eight rates and rules regarding ‘IF I HAVE A SHORTER-THAN- LY AND INVEST THEM, I’LL Security, the changes are
questions about how the survivor benefits mean that AVERAGE LIFE EXPECTAN- COME OUT AHEAD’ likely to affect people fur-
program works. most people are better off CY, I SHOULD CLAIM BEN- No investment offers a ther from retirement. “Lock-
Here are the myths most delaying, says researcher EFITS EARLY’ guaranteed return as high ing in” your benefit early
likely to cost you money: Sita Slavov, a professor of Most people underesti- as what you can get from just means settling for small-
‘IT DOESN’T MATTER WHEN I public policy at George mate how long they are delaying your Social Secu- er checks for life.q

US employers hired a record number of people in April

By CHRISTOPHER RUGABER in April. That suggests de- in April. “Today’s numbers
Associated Press mand for labor is softening confirm that the labor mar-
WASHINGTON (AP) — a bit. ket has lost some momen-
U.S. employers hired the Growth also appears to be tum,” said Nick Bunker, an
most people on record in slowing, with most econo- economist at the job list-
April, while the number of mists forecasting that the ings website Indeed. “Slow-
open jobs was largely un- economy will expand in downs happen. Just be-
changed, evidence that the April-June quarter at cause this year won’t be as
the job market remains about half the pace it did strong as last year doesn’t
solid. in the first three months of mean a recession is loom-
The Labor Department said the year. Rising trade ten- ing.” There are still more
Monday that businesses sions with China, slowing jobs available than there
filled 5.9 million jobs that growth in Europe and Asia, are unemployed workers,
month, 4.2% more than in and the fading of stimulus a rare development and
March and the most since from tax cuts and greater stark illustration of how low
records began in Decem- government spending last unemployment has fallen.
ber 2000. year are weighing on the Monday’s report, known
Some of the increase in In this Tuesday, June 4, 2019 photo, job applicants wait in line at economy. as the Job Openings and
hiring simply reflects popu- the Seminole Hard Rock Hotel & Casino Hollywood during a job On Friday, the govern- Labor Turnover Survey, or
lation growth. As a per- fair in Hollywood, Fla. ment said employers add- JOLTS, also measures lay-
centage of the workforce, Associated Press ed just 75,000 jobs in May offs, which ticked up in April
new hires reached 3.9%, a The report shows employ- ing signs: The number of and 224,000 in April. Those to 1.75 million but remained
strong reading but below ers are confident enough job openings has declined monthly figures are a net at a low level. Rising layoffs
the record of 4.3% reached about the economy to add from a record 7.6 million total, while the 5.9 million would be a signal that the
in January 2001. staff. Still, there were warn- in November to 7.4 million is a total count of all hiring economy was worsening.q