The main drawback to attempting to collect unemployment while you are collecting social security is that in some cases you are not allowed to hold down a full time job. Most of the time any job you have will be part time. This alone may be reason enough to disqualify you for unemployment.
Are You Able And Available To Work?
Secondly, when you answer your weekly questions to qualify for unemployment you must answer that you were “able and available” to work. If you are considered disabled and you are collecting disability social security payments this would cause a conflict. The fact that you knew it was a part time or temporary job may also disqualify you for unemployment.
Limits Set By Social Security
Normally the first year that you draw social security when you take early retirement at age 62 you are limited as to how much money you are allowed to make. You can still work but you may only be able to work part time to avoid going over the limit that social security has set. If you do go over this limit you will be required to pay the excess money back to social security.
Reduction in Unemployment Benefits
You can draw unemployment while you collect social security but your weekly unemployment benefit will be reduced by the amount of the social security check. Divide the monthly social security amount 4 to get the weekly amount.
Legal Consequences of Committing Fraud
Attempting to collect full unemployment while receiving full social security benefits carries serious legal consequences. It’s not worth the risk of possibly going to jail or having to pay it all back when you didn’t have it to spend in the first place.