Working with Social Security
My university offers tenured faculty over the age of 60 two retirement options: (1) a buyout, where the faculty gets a full year’s worth of salary and benefits in exchange for immediate retirement and (2) phased retirement, where the faculty can choose reduced salary (70%, 50% or 30%) with reduced responsibilities for up to five years.
I chose phased retirement because (a) I wasn’t ready to quit cold-turkey and (b) I wanted to max out my Social Security. I’m glad I did.
There’s a third option that I didn’t take, but many Americans are taking: working for reduced salaries while taking Social Security benefits at the same time.
“Claiming Social Security while still working isn’t an outlier these days.
“It’s pretty common, according to a recent report by the Center for Retirement Research at Boston College, which found that 2 in 5 people combine work and benefits for at least some period of time.”
Working While Collecting Social Security
“Claiming Social Security while still working isn’t an outlier these days.”
It seemed pretty common when my parents retired in the 70’s. One of the places they worked would make sure they stayed under the limit for losing benefit money. They employed a lot of SS recipients part time. Now it only matters for those under full retirement age.
Jane:
I worked till I was seventy. I had a higher salary so it was worth it. I also had an expense account which they said I could keep monthly funds. So, I did and banked it. Jan (wife) also worked till seventy. Together, we can get by monthly.
Joel:
Phased out in Commercial Enterprise is being told you are too expensive and you are phased out over three months! I never told them everything and I kept my contacts to myself.
@Bill,
There’s no tenure in commercial enterprises. With academic tenure, you can only be fired for cause. Phased retirement and buy-outs are necessary to incent retirement of underperforming tenured faculty who otherwise would cling to their job.
Years ago, I remember the chair of Biology at Washington University moved a tenured faculty who was underperforming to a small office in the basement and froze his salary, letting inflation do the rest.
Joel:
Tenure in the commercial industry is by number of years and seniority. Last person in is typically the first one out in a department. Before a company let’s a more senior person go, it will be reviewed by personnel and a VP.
What is bad is when they let a high performer go and keep the idiot.