Unemployment Basics

• The most basic unemployment insurance compensation requirement stipulates that only those who lose a job through no fault of their own can qualify for benefits. States base the amount of money you receive from unemployment insurance programs on your salary or wages at your most recent job(s). If you failed to earn a certain amount of money -- the amount varies from state to state -- in the year previous to filing, you cannot qualify. These requirements exclude anyone without recent employment history, though various gray areas exist in unemployment law.
  
  

Willful Retirement

• If you retire of your own will and do not actively seek new employment upon retiring, you do not qualify for unemployment benefits. However, willful retirement does not automatically exclude you from qualifying for unemployment. For instance, if you retire to avoid firing or without intending to leave the workforce, and you begin seeking new work immediately after retiring, you may qualify. Ultimately, whether you can receive unemployment if you willfully retire depends upon state law and often involves either an investigation into the specifics of your case or a reduction of standard benefit amounts.
  
  

Unwillful Retirement

• When you retire through adverse or unwilling circumstances, you usually qualify for unemployment. For instance, if your employer forces you into retirement to eliminate your position, close a facility, replace you, save money, or any other reason, you can file for unemployment. Or if an employer offers you the option of firing or retiring, you can chose the latter and still qualify for unemployment. If your company offers you a pension in retirement, unemployment authorities may base your benefit amount on the amount of your pension.
  
  

Unemployment and Social Security

• In some instances you may retire, receive unemployment and simultaneously receive social security. For instance, if you reach retirement age and your employment forces you to retire, you can qualify for unemployment. Because of your age, you may also qualify for social security. Or if you reach retirement age while on unemployment benefits, you can begin receiving social security and simply elect to retire once your unemployment benefits run out, thus effectively retiring while on unemployment. The Social Security Administration allows you to receive both forms of benefits, though state law may place restrictions on unemployment for social security benefit recipients.