If you’ve earned a pension from work, your Social Security may the impacted.
Check out this week’s video where we talked about three types of pensions, how they impact Social Security, and how to calculate the Social Security reduction.
If you have questions about pensions and Social Security, please ask in the comments.
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Pensions and Social Security play a vital role in ensuring financial security for retirees and elderly individuals. These programs are designed to provide a source of income for people after they have retired from the workforce, allowing them to maintain their standard of living and cover their basic expenses.
Pensions are a form of retirement income that is paid out to individuals who have contributed to a specific pension plan during their working years. These plans are often sponsored by employers and may be defined benefit plans, where the payout is determined by the employee’s salary and years of service, or defined contribution plans, where the payout is determined by the amount contributed to the plan and the investment performance of those contributions.
Social Security, on the other hand, is a government-run program that provides benefits to retirees, disabled individuals, and the surviving spouses and children of deceased workers. Workers contribute to the Social Security program through payroll taxes, and in return, they are eligible to receive benefits when they reach retirement age.
Both pensions and Social Security are essential components of a comprehensive retirement plan. They provide a guaranteed source of income that can help individuals cover their living expenses and medical costs in their later years. However, the current landscape of retirement benefits is facing challenges due to changing demographics and economic factors.
One of the most significant concerns for pensions and Social Security is the aging population. As the baby boomer generation reaches retirement age, the number of retirees drawing benefits from these programs is increasing, placing a strain on their long-term sustainability. Additionally, increases in life expectancy mean that retirees are drawing benefits for a longer period, further adding to the financial burden on these programs.
Furthermore, economic factors such as low interest rates and uncertain investment returns have made it challenging for pension funds to generate the returns needed to meet their future obligations. This has led to underfunded pension plans in some cases, causing concerns about their ability to fulfill their promises to retirees.
To address these challenges, policymakers and employers are exploring various strategies to ensure the long-term viability of pensions and Social Security. This may include raising the retirement age, increasing payroll taxes, adjusting benefit formulas, and encouraging individuals to save more for retirement through individual retirement accounts.
In conclusion, pensions and Social Security are crucial to providing financial security for retirees and elderly individuals. However, these programs are facing challenges due to demographic and economic factors, which will require innovative solutions to ensure their sustainability for future generations. It is essential for individuals to educate themselves about these programs and to make informed decisions to supplement their retirement income through additional savings and investments. By doing so, they can better prepare for a secure and comfortable retirement.
FERS has social security taken out
I retired from state, I also get my x husbands beneficiary monthly check total is 4,800 per month from Calpers, I am turning 62 this year and worried Social Security will deduct, should I call Social Security and find out or can you tell me if these pensions are considered hybrid, thank you for any advice.
Can you please help me understand this point….my corporate AND military pension will be about $65,000 per year (I am 60 years old at this moment). Now, if I file for SS retirement benefit at 62 will SS view my pensions as income and penalize my SS benefit 50% or more (I read something to that effect where I would basically pay back 50%of the money back when I do my taxes) where it would be better for me to just wait until age 67 to claim social security retirement benefit?
Thank you.
I have 16 years in with STRS and 27 with Social Security and am less than a year from partial retirement from a non-STRS employer at age 60. Should I start taking STRS right away and delay taking my Social Security for as long as possible? I checked the WEP chart and my reduction will be only around $150.
Retiring too young can cause many problems later. 62 is certainly too young. Most of us should wait until 70 to begin collecting a Federal welfare check.
Hi, I want to pull out my pensions for Maya company, like Raytheon, But I wanna do such a security retirement and 65 or more, and if I still have pensions left from my company, will that reduce my Social Security payment at age 65? What is the retirement age
Took my pension at 55 claimed my Social Security at 62. Glad I did it !
If you pay CalPERS (Non Hybrid) are you effected? Or is only Non covered effected? I have paid approximately 7 years into social security, and will be working in a PERS job only going forward until my retirement which is approximately 25 years away. thanks for your help
when a person is retired on a pension they are entitled to that pension. Same with the social security one has nothing to do with the other. Especially when they are only receiving less then $60,000 per year on one or the other. they put into both with their paychecks.
I think you are mistaken…under category 3 Non-covered , FERS employees do pay into social security. I think you may be talking about the older CSRS retirement system but FERS employees DO pay into social security. I've been doing some research on retirement and decided to watch your video. I'm trying to figure out how my pension and social security work together and if there are any benefits or drawbacks that I will be facing. Since I do pay into social security how is my pension going to affect it, if at all?
I enjoyed your video. Can you tell me if the WEP is used when a resident-alien receiving U.S. Social Security claims a foreign pension (from Sweden). Thank you.
I retired from the federal government after 20 years. On a disability. Can I collect social security and still work.
I just watched your video and I just had an incident with soc sec. regarding my pension. I was in shock that they said I was overpaid because of my calpers pens. Your video shed some light on my situation where I can appeal. I had taxes taken out fica, state and federal. Thanks you for educating me with the tools to tackle this battle.
Is the reduction cap on pensions still applied after reaching full retirement age.
Am I currect in assuming that I would get the full amount of both pension and social security if I work for a private employer?