Frequently Asked Questions
What happens to my Social Security if I get divorced?
If your marriage lasted for at least 10 years and you are currently unmarried, you may be eligible to claim a spousal benefit on your ex-spouse’s record. You can do this even if your ex-spouse has remarried. To qualify, you must be at least 62. The benefit you can receive is up to 50% of your ex-spouse’s full retirement benefit. Claiming this benefit will not affect the amount your ex-spouse or their current spouse receives.
Can I work and still receive Social Security benefits?
Yes, you can. However, as mentioned earlier, if you are under your Full Retirement Age, the annual earnings test applies. If your earnings exceed the yearly limit, your benefits will be temporarily reduced. The moment you reach your FRA, this test no longer applies, and you can earn as much as you like without any reduction in your Social Security check.
How does a government pension affect my Social Security?
If you worked for a federal, state, or local government agency where you did not pay Social Security taxes, your pension from that job can affect your Social Security benefits. Two rules may apply: the Windfall Elimination Provision (WEP) can reduce your own Social Security retirement benefit, and the Government Pension Offset (GPO) can reduce your spousal or survivor benefit. These rules are complex, so it’s important to use the SSA’s online calculators or speak with an agent to understand your specific situation.
Will my Social Security benefits keep up with inflation?
Yes, Social Security benefits are designed to keep pace with inflation through an annual Cost-of-Living Adjustment (COLA). Each year, the SSA reviews the inflation rate using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is an increase, your benefits will be adjusted upward starting in January of the following year. This is a powerful feature that helps protect your purchasing power over a long retirement.
Is it better to take a smaller Social Security check and a larger pension payout, or vice versa?
This is a common question for those with workplace pensions that offer different payout options. There is no one-size-fits-all answer. You must consider your health, life expectancy, and your spouse’s financial needs. A key factor is that your Social Security benefit has an automatic COLA, while most private pensions do not. This means your Social Security check will grow over time to combat inflation, while your pension payment will likely remain flat. For many, maximizing the inflation-protected Social Security benefit provides greater long-term security.
