Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Mixed social security coverage
Old 04-23-2013, 06:27 AM   #1
Recycles dryer sheets
Join Date: Jun 2012
Posts: 65
Mixed social security coverage

My apologies if this was already discussed. I searched, but didn't see this question being discussed ....

I've w*rked 35 years in various jobs where I paid SS taxes out of each paycheck. A few months ago, I visited the local SS office and received an estimate that I would receive a benefit of about $22K a year if/when I started receiving SS payments at 62.

Just this week, I started w*rking in a government position that is NOT covered by other words...SS taxes are no longer coming out of each paycheck. I plan on w*rking at this position for about 5 years until I'm about 63 years old. After that, I'll be eligible to retire and collect a government pension of around $450/month.

Since I'll be w*rking for at least 5 years in this government job that does not collect SS taxes, will that effect my estimated SS benefit when I finally start to receive those SS benefits?

trapperjohn is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-23-2013, 06:40 AM   #2
Recycles dryer sheets
Join Date: Jan 2013
Posts: 82
I think the answer is yes in 2 ways. Your estimate was likely based on the assumption you would continue to work in a social security contributing job at your last pay. You already have enough years that none of the averaged years will be 0 but presumably your first years were not as high paying as your last. It might not make a big difference but some so you should recalculate.

I think though if you collect a government pension that will reduce your social security take as well

Sarah S is offline   Reply With Quote
Old 04-23-2013, 07:36 AM   #3
Full time employment: Posting here.
Accidental Retiree's Avatar
Join Date: Feb 2012
Posts: 882
Congrats on the new position!

You are probably thinking about the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)adjustments to Social Security. Here's the link to WEP.

Retirement Planner: Windfall Elimination Provision (WEP)

There are 2 ways your SS could be affected: WEP and GPO.

If you have fewer than 30 years of substantial earnings, according to what SS deems substantial, your social security will be reduced to some extent by your pension earnings.

If you have 30 years paying into SS at the required levels, then your SS should not be reduced. The link about will tell you more and provides you with a calculator and a chart telling you each year's earnings to help you determine whether you've hit the 30 years.

Read also about GPO to see if that will have any effect on you.

This article will also be useful to you.
Chief Retirement Strategist
The AR Group
Accidental Retiree is offline   Reply With Quote
Old 04-23-2013, 05:36 PM   #4
Full time employment: Posting here.
Join Date: Mar 2008
Posts: 631
If I had to guess, based on what you'll receive for SS, WEP won't affect you as you've likely had 30 years of substantial earnings. Any reductions you might receive will be due to them projecting continued SS qualified work until you retire, which drops off some of your lower earning years.
akck is offline   Reply With Quote
Old 04-23-2013, 06:10 PM   #5
Thinks s/he gets paid by the post
gauss's Avatar
Join Date: Aug 2011
Posts: 1,450
I just posted over here over here about how you can get a SS estimate that does not included future earnings. The estimate only shows what you have already accrued. The trick is to enter $0 as last years earnings in the Social Security estimator.

gauss is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 09:12 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.