Unemployment Benefits and Social Security

• A question some people have is how their Social Security benefits will be affected by unemployment. These are called "Social Security offsets" because, in most cases, the benefits from Social Security will offset the unemployment benefits someone could be eligible to receive. The laws regarding this differ from state to state. According to the National Employment Law Project, or NELP, in 2008 only five states had laws where people could receive 50 percent of these offset benefits. People in Puerto Rico could receive 100 percent of them. Groups like AARP and NELP have been working to make the these offset laws legal in as many states as possible.
  
  

Unemployment in Another State

• If a person becomes unemployed, but then moves to a new state, it's possible that unemployment benefits may not transfer. The laws regarding unemployment vary from state to state, so one way to determine eligibility is to simply apply. It may take a couple weeks for a response, so apply as soon as possible. All information can be found at a state's unemployment website.
  
  

Partial Unemployment

• When companies make cutbacks, people can be forced to take furlough days. These are days when people can't come to work and don't receive pay. Depending on the amount of furlough days, people may be eligible to apply for partial unemployment benefits. Again, apply for these benefits to determine eligibility.
  
  

Early Retirement

• In 2003, the Employee Benefit Research Institute found 40 percent of people polled said they'd been forced into retirement earlier than anticipated. This can decrease Social Security benefits because these benefits are calculated using the amount of money a worker made in her final years at the company. Early retirement takes off years in which she could have made a higher salary.
  
  

Plan Ahead

• While no one plans on retiring early or becoming unemployed, it's important to plan ahead. Things for a worker to think about when saving money and planning are the type of life he wants to live in retirement, the ability to travel and where he wants to live.