More seniors seek early retirement

By Ying Ying Lee and Du Liya Source:Global Times Published: 2014-3-27 17:53:01

The US was once considered one of the best places in the world to retire, but with a stalling economy the situation is likely to change as employers trim employee retirement benefits.

More Chinese-American senior citizens are choosing to retire early to avoid being affected by future changes made to the retirement system.

Medical workers and postal workers, who have some of the most secure jobs in the rocky job market, have also witnessed a wave of early retirement.

Dorothy Lee, a nutritionist at a hospital in Los Angeles, said she can enjoy good retirement benefits offered by the hospital since she has worked there for over 15 years, but is not free from retirement anxiety.

Lee said that she needed to renew her employment contract every three years, and the labor union informed her that new employees hired after 2015 will probably not get a contract including pension plans. She can secure her "grandfather package" if she retires this year to avoid any change in the retirement policy, Lee noted.

Lee said that her "grandfather package" will include monthly social security of over $1,000 and a monthly pension of $2,000 if she retires this year, and she can commute the pension into a lump sum or receive it on a monthly basis.

Caroline Huang, 65, who has worked at the same medical organization for 25 years, said that she is also considering early retirement. Huang said that this is because she believes recent healthcare reforms will also squeeze hospital profits resulting in a less favorable policy for employees.

The US Postal Service (USPS), traditionally viewed by many Chinese-Americans as a secure job, also has options  to retire early. Postal workers are federal workers who enjoy federal retirement coverage in addition to social security. Now the early retirement benefits for USPS include personal retirement welfare and an extra bonus of roughly $15,000.

A recent survey conducted by the Employee Benefit Research Institute (EBRI) showed that Americans are not confident in their retirement prospects, and many have significant financial concerns. About 28 percent of respondents said they are not confident they have enough money to retire, compared with 23 percent in 2013 and 27 percent in 2011.

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