How Do Pensions Affect Your Social Security Benefits? 📈
Вставка
- Опубліковано 7 сер 2024
- 🔗 Key Takeaways:
✅Windfall Elimination Provision (WEP):
WEP primarily impacts individuals receiving pensions from employers without Social Security tax withholdings.
Designed to prevent double-dipping, WEP aims to avoid individuals receiving both a full pension and a complete Social Security benefit.
Exceptions exist for those who paid into the Social Security system for at least 30 years outside of their pension employment.
✅Government Pension Offset (GPO):
GPO focuses on individuals with government pensions from employers without Social Security tax withholdings.
Aims to prevent dual collection of pension and full Social Security benefits, reducing spousal or survivor benefits by two-thirds of the government pension amount.
Changes in non-covered pension amounts generally don't affect Social Security benefits, except when the pension is suspended.
✅Exceptions and Relief:
Explore exceptions to WEP, such as 30 years of Social Security system payments or specific employment scenarios exempt from WEP, like federal government hires after December 30, 1983.
Discover the 60-month exception for government employees to avoid GPO reduction, allowing them to maintain full spousal or survivor benefits.
Maximizing Retirement Income:
Having a pension does not automatically exclude individuals from receiving Social Security benefits.
Consider various factors like employment history, pension eligibility, and Social Security benefits to tailor a retirement plan.
Consult financial advisors and use online resources like Social Security Administration calculators for informed decisions.
✅Strategies for Financial Security:
Despite WEP and GPO impacting those with non-covered pensions, exceptions and strategies exist to secure full Social Security benefits.
Education on WEP analysis, GPO, and other influencing factors empowers individuals to make informed decisions for a financially secure retirement.
Recognizing the uniqueness of each individual's situation, consulting with financial professionals is crucial for navigating retirement planning complexities.
📥 Download your guide on maximizing Social Security benefits and lowering your tax bill in retirement: keap.seasidewealth.com/you-tu...
🔔 Don't forget to subscribe to our UA-cam channel for more valuable content to help you on your retirement journey. Your retirement dreams await, and we're here to guide you every step of the way.
➡️ Every Tuesday at 6:30 p.m. PT, we host our Saving Money On Taxes In Retirement Webinar. Register here: event.webinarjam.com/channel/...
🕒TIMESTAMPS🕒
00:00 Intro
00:52 Windfall Elimination Provision (WEP)
02:32 Government Pension Offset (GPO)
03:36 Exceptions
05:14 Maximizing Your Retirement Income
06:36 Outro - Розваги
This is a very complicated subject. I live in NYC there are many retired city workers here. The NYC pension plan knocks out their SS.amy men in LA aw enforcement are divorced and their ex-wife gets half their pension. This makes retirement much tougher. If they are remarried and die. Their second wife gets nothing.
That sounds like it’s challenging to navigate. What do you do for work? When do you want to retire?
@@SeasideWealth I am regional director for ICan Financial. We are an insurance brokerage.
I have been receiving a state retirement check since I was 44 , if I work 12 years and pay into as those years, about how much would I receive at age 62 for as benefits ?
There is not an exact value that can be calculated. It is based on how much you have contributed via your working income. If you have more questions about social security or other aspects of retirement, feel free to reach out to our team via our website!
Ok I may need to do more research. So as primary and looking to retire under FERS in about 5 years will this affect me or my wife (who is not getting a pension?)
Your FERS should not affect your wife’s Social Security. Do you have your own social security benefit?
@@SeasideWealth yes of course. Mine will be higher so hoping to start my wife’s benefit at 62 and then mine at 67
If I collect under WEP can I then collect under spousal benefits
Can you clarify this a bit? Is your benefit affected by WEP? Are you asking if you can take your benefit which is affected by WEP and then switch over to the spousal benefit?
What about serving in the U.S. Military? My daughter has been serving in the USAF for over 11 yrs so far. How will SS be affected?
Great question! Generally, there is no reduction of Social Security benefits because of your daughter’s military retirement benefits. She will get her Social Security benefit based on her earnings and the age she chooses to start receiving benefits. While you're in military service, you pay Social Security taxes, just as civilian employees do.
Is she going to put in 20 years and get a pension? What does she want to do afterwards?
@@SeasideWealth thank you for your reply.
I am 63 and have 21 years of teaching in Tx. I also can retire from SS but will get affected by WEP. I have worked about 26 yrs and paid SD but only 21 are substantial. Im still working part-time but make 13 thousand a year. Would those count at all for the substantial earning. Am I just donating the taxes that the government collects. Should i claim dependents so i can collect more?
Great question! Substantial earnings are defined as $31,275 or more for 2024 (up from $29,700 for 2023). Is there anyway you could work a few more hours to increase your earnings? As soon as you get to 30 years of substantial earnings, the wind fall elimination provision goes away which should be great for you.
0
The one thing is if you paid into social security the correct amount quarters then and onl then you should receive your full amount of social security not a reduced rate. This has cheated 8-10 states of people that have paid social security. Robbing the payee of there own benefits
Good points! Feel free to schedule a call if you have any questions or need assistance.
schedule.seasidewealth.com/c/mattcallahan/introductory-call?bv=d460cdf5-ea29-4ddd-a33b-046addb26bfd
But SS is not linear. You know how the rich gets to pay at a higher tax rate? Well SS is also progressive. Lower earners get a higher replacement rate than higher earners; 90% for the lowest and about 28% for those at max. Because of your non-covered earnings that SS did not know about, you are a higher earner than you appear to be. So SS effectively slides you up the scale; by giving you a 40% replacement rate, rather than the 90% replacement rate.
Please note that non-gmvt folks would get a 32% replacement rate for earning from a second/additional job.
I find it interesting that most planners, who should absolutely understand the math and the 'why', seem to placate their potential customers, rather than explaining.
I am on VA Pension as a Persian Gulf War-era veteran and I have an SSDI hearing this April 23, 2024. Is it possible to keep both my VA Pension and SSDI (if I get approved)?
That’s a great question! You should speak to my partner and ask him. Here is a link to schedule a call w Matt:
calendly.com/matt_seaside/introductory-call