Do Pensions Count As Earnings While Collecting Social Security?
Social Security will not count your pension from work as a form of income unless that pension comes from a government office. People that receive government retirement pensions are subject to the Windfall Elimination Act, and will have their Social Security offset. If you or your spouse are collecting a government based pension you will more than likely see your retirement benefits reduced or eliminated by the SSA. If you or your spouse is receiving benefits from a non-government job your retirement benefits will not be affected.
Will My Social Security Retirement Benefits Be Changed Because Of My IRA?
Social Security benefits are only offset for two reasons. First, if you receive a government pension of any type. Second, if you return to employment after you have begun collecting your benefits; and then only until you are 70. If you have retirement savings, IRA’s, annuities, reverse mortgage, CD’s or any other type of personal retirement investment, your benefits will not be adjusted. If you or your spouse are still working at the time of your retirement you may see a slight adjustment until they begin to claim a retirement, but this is not a definite rule. Each person will have to address the SSA to fins out how their spouse’s earnings will affect their own personal benefits.
Will My Social Security Benefits Ever Increase?
Most years the Social Security office administers a cost of living adjustment (COLA) to the benefits it pays. This small change is supposed to provide the recipients better purchasing power. While this is a much appreciated raise in benefits, the cost is usually consumed by a raise in Medicare premiums, and the recipient ends up breaking even. However, this may change in the future as the new health care system evolves.
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