See how your pension may affect your benefits (2024)

FAQs

How does my government pension affect my Social Security benefits? ›

Your benefit might be reduced if you get a pension from a government employer who wasn't required to withhold Social Security taxes. This reduction is called the “Government Pension Offset” (GPO). Learn more about this reduction (PDF).

Your monthly Social Security benefit is determined by four main factors: your work history, your earnings history, your birth year, and your claiming age. Let's break down each factor.

money you take out of your pension will be considered as income or capital when working out your eligibility for benefits - the more you take the more it will affect your entitlement. if you already get means tested benefits they could be reduced or stopped if you take a lump sum from your pension pot.

For general Social Security inquiries, call us toll-free at 1-800-772-1213 or 1-800-325-0778 (TTY) between 7 a.m. and 7 p.m., Monday through Friday.

Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. You may need to pay income tax, but you do not pay Social Security taxes.

Government pension offset (GPO)

A provision that reduces and may eliminate the amount of spousal and survivors benefits paid to someone who's eligible for a pension from work not covered by Social Security taxes.

Can you collect Social Security and a pension at the same time? You can retire with Social Security and a pension at the same time, but the Social Security Administration (SSA) might reduce your Social Security benefit if your pension is from a job at which you did not pay Social Security taxes on your wages.

Earned income does not include amounts such as pensions and annuities, welfare benefits, unemployment compensation, worker's compensation benefits, or social security benefits. For tax years after 2003, members of the military who receive excludable combat zone compensation may elect to include it in earned income.

retirement age during the whole year

For the earnings limits, we don't count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains.

Pensions, also known as pension pots, are long-term savings that you can only access after reaching a certain age. Currently, this age is 55, but it's set to rise to 57 in 2028. Pensions come with attractive tax benefits, making them a cornerstone of retirement planning.

How long does a pension last? ›

Pension plans typically provide the payment of a set amount every month from your retirement date for the rest of your life ("an annuity"). You may also choose to receive lifetime payments that continue to your spouse after your death.

Typically that's 65, though many pension plans allow you to start collecting early retirement benefits as early as age 55. If you decide to start receiving benefits before you reach full retirement age, the size of your monthly payout will be less than it would have been if you'd waited.

Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.

You can retire with Social Security and a pension at the same time, but the Social Security Administration (SSA) might reduce your Social Security benefit if your pension is from a job at which you did not pay Social Security taxes on your wages.

How much will my Social Security benefits be reduced? We'll reduce your Social Security benefits by two-thirds of your government pension. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be deducted from your Social Security benefits.

If you receive a public pension from federal, state or local government, don't count on full Social Security benefits. Here's how to protect your retirement.

If you receive retirement benefits in the form of pension or annuity payments from a qualified employer retirement plan, all or some portion of the amounts you receive may be taxable unless the payment is a qualified distribution from a designated Roth account.