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After being laid off, Andrea, 64, faces a difficult choice: find a job or start collecting Social Security.
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Many older Americans rely on Social Security in retirement and struggle to pay their bills.
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About 13% of baby boomers on LinkedIn were “not retired” by 2023, a five-year high.
When Andrea, 64, was laid off in February, she joined many older Americans who are unexpectedly re-entering the workforce.
She spent decades climbing the corporate ladder at various staffing and recruiting firms in Minnesota’s Twin Cities, taking on leadership roles and earning six-figure salaries. She planned to continue working until she reached retirement age at age 67.
Now Andrea — whose identity is known to Business Insider but is asked to use her first name for privacy reasons — is weighing her options. She’s thinking about getting Social Security benefits sooner than she originally thought, but she’s concerned about the long-term savings and would prefer to get another job.
“I would really have to make some major paradigm shifts in my life to keep from digging into retirement,” she said. “I would have to become super frugal, and I would rather work.”
Decisions about when to stop working and take Social Security have become a cornerstone of the retirement experience. Older Americans become eligible for Social Security at age 62, or they can wait until their full benefits start at age 67. Monthly Social Security checks, which averaged $1,924.35 in October, are the main source of retirement income for many baby boomers. But that’s often not enough unless it’s supplemented with other savings, such as a 401(k) or investments.
Business Insider has heard from more than 1,000 baby boomers who regret retirement. Many wish they had waited to receive their maximum Social Security benefit, while others retired early for reasons beyond their control. For people like Andrea, a layoff later in life can derail their best financial plans.
We want to hear from you. Are you an older American with one regret in your life that you would like to share with a reporter? Please fill this in fast shape.
With her retirement decision looming, Andrea feels like she is “walking a tightrope” between starting her retirement and potentially outliving her savings. She said her husband, a retired lawyer, receives several thousand dollars a month between his Social Security checks and his pension. Andrea estimates her benefits would be just over $2,000 a month if she were to retire now – and she doesn’t think that’s enough to live on.
