In today’s video we’re discussing How Pension Income Affects Social Security Benefits. Windfall Elimination Provision (WEP) Guide Windfall Elimination Provision (WEP) Calculator Government Pension Offset (GPO) Guide Government Pension Offset (GPO) Calculator SSA Frequently Asked Questions Top Social Security Videos: 🔴 Social Security Expansion Act [EXTRA $200/month for ALL]: 🔴 20% CUT in Social Security Benefits by 2035??? [MUST WATCH!]: 🔴 Social Security Expansion Act [EXTRA $200/month for ALL]: 🔴 How to Read Your Social Security Statement: 🔴 Social Security Benefits - The #1 Mistake Made When Filing: 🔴 Benefits of taking Social Security at age 62: 🔴 Social Security Planning Mistakes: [Avoid them at all costs]: 🔴 Plan for Social Security in 2022 [MUST WATCH]: ✅ SUBSCRIBE to NOT being a transaction ever again... ✅ Like us on Facebook! ✅ Follow us on Twitter! ✅ Check out our site for more tips You need a total of 10 years paying Social Security taxes to receive Social Security benefits at retirement. But if you receive a pension, do you get both? It depends on if the pension is a government pension or a private pension, and if your employer withheld Social Security taxes. If you or your spouse worked for the government and no Social Security taxes were withheld, your Social Security benefits (or your benefits on your spouse) may be reduced. There are two scenarios where this would come into play, the Windfall elimination provision (WEP), and the Government Pension Offset (GPO). Here’s the difference: Windfall elimination provision (WEP) If you worked for both: at least one employer that did withhold Social Security taxes and at least one employer that didn't withhold Social Security taxes and that offers a pension, If you receive both a pension and Social Security benefits, your benefits could be reduced by up to 50% of your pension amount. Note: This reduces the “workers’ benefit. Government Pension Offset (GPO) The government pension offset (GPO) could reduce your benefits if you worked a job that didn’t withhold SS taxes from your pay, and you claim your spouse or former spouse’s Social Security benefits. The GPO could result in your not receiving ANY benefits at all on your spouse or former spouse. Note: This reduces the benefit of a spouse or former spouse who claims spousal benefits. There are some exceptions to the WEP reducing your benefits: If you paid into 30 years of Social Security taxes If you were hired by the government after Dec. 31st, 1983 If the only pension you receive is from a railroad. If you are a military reservist receiving a reservist pension. If you are a minister receiving a ministry pension. These are very complicated cases that should be handled with the Social Security administration. #HowPensionIncomeAffectsSocialSecurityBenefits #WEP #gpo...(read more)
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How Pension Income Affects Social Security Benefits Pensions and Social Security are two common sources of retirement income for many Americans. However, it is essential to understand how these two sources interact and how one can affect the other. In the United States, the impact of pension income on Social Security benefits is determined by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions are designed to ensure fairness and prevent double-dipping in the social security system. The Windfall Elimination Provision (WEP) primarily affects retirees who have worked in jobs not covered by Social Security but have earned enough credits to qualify for benefits. These jobs often include positions in state and local government agencies or jobs in foreign countries. Under the WEP, a formula is applied to calculate the reduction in Social Security benefits based on pension income. The higher the pension income, the greater the reduction in Social Security benefits. However, the WEP does not eliminate social security benefits entirely; it only reduces the amount. The Government Pension Offset (GPO) applies to individuals who receive a pension from a federal, state, or local government job and are also entitled to spousal or survivor benefits from Social Security. The GPO reduces the spousal or survivor benefit amount by two-thirds of the pension received from the government job. This provision aims to prevent individuals from receiving a full Social Security benefit on top of a substantial government pension. Unlike the WEP, the GPO can entirely eliminate a spouse's Social Security benefits. It is important to note that not all individuals are subject to these provisions. These rules primarily affect workers who have significant pensions from non-Social Security-covered employment. For those with modest pensions or who have both Social Security-covered and non-Social Security-covered employment, the impact may be minimal or non-existent. Understanding the WEP and GPO provisions is crucial for retirement planning. If you are affected by either provision, it is essential to account for the reduction in Social Security benefits when estimating your retirement income. Financial advisors, retirement planners, or Social Security administration representatives can help you navigate through these complexities. To mitigate the impact of these provisions, one strategy is to maximize Social Security-covered employment. By working in jobs that contribute to Social Security, you can potentially earn higher benefits that are not subject to reduction due to pension income. Another option is to build additional retirement savings through individual retirement accounts (IRAs) or employer-sponsored retirement plans, which can provide a source of income that is not subject to WEP or GPO reductions. It is also worth noting that there have been ongoing discussions on reforming or repealing the WEP and GPO provisions due to perceived inequities in their application. Several bills have been introduced in Congress over the years to address these concerns, but no significant changes have been made as of yet. Therefore, it remains crucial for individuals affected by these provisions to stay informed and plan their retirement accordingly. In conclusion, understanding how pension income affects Social Security benefits is crucial for retirement planning. The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) are designed to prevent double-dipping and ensure fairness in the social security system. By being aware of these provisions and their potential impact, individuals can make informed decisions about their retirement income and explore alternative strategies to optimize their benefits. https://inflationprotection.org/the-impact-of-pension-income-on-social-security-benefits/?feed_id=119498&_unique_id=64ba4a39ad175 #Inflation #Retirement #GoldIRA #Wealth #Investing #governmentpensionoffset #HowPensionIncomeAffectsSocialSecurityBenefits #retiringwithapensionandsocialsecurity #retiringwithapensionandsocialsecurityexplained #retiringwithapensionandsocialsecurityincome #retiringwithapensionandsocialsecurityprosandcons #retiringwithpensionandsocialsecurity #socialsecurity #SocialSecurityandPensions #SocialSecurityReduction #windfalleliminationprovision #SpousalIRA #governmentpensionoffset #HowPensionIncomeAffectsSocialSecurityBenefits #retiringwithapensionandsocialsecurity #retiringwithapensionandsocialsecurityexplained #retiringwithapensionandsocialsecurityincome #retiringwithapensionandsocialsecurityprosandcons #retiringwithpensionandsocialsecurity #socialsecurity #SocialSecurityandPensions #SocialSecurityReduction #windfalleliminationprovision
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