Low Income Retirement

[PandaBear]

Hello, I wrote back in 2020 regarding my sister, who was getting divorced at 56 after 25+ years of marriage That was finalized in 2021. With help from my mom, she just bought a house. She just turned 60 and expects to work until 67.

I am helping her with her finances and thought I'd turn here first for any ideas or suggestions.

The basics are as follows:
1. She has about 175K in an IRA.
2. She is a teacher, but hasn't been working very long. She will get a pension. Based on her current salary, she'll get about 36K per year. I imagine it will go up a little.
3. She has SS but will be highly impacted by WEP. At 67 she would get about $608 per month. If she waits to 70, it goes up to about $895. I do realize those numbers will change due to inflation.
4. Her new home is on a 15 year mortgage. With her paying an extra $200 a month and me paying the same, we can get it down four years, 6 months, to 10.5 years instead of 15. If I bump up my contribution to 3k per year, we can make that 4 years, 11 months reduction. It really doesn't seem to matter if I make one yearly payment or 12 monthly payments.
5. Her car payment finishes in November. She will then start putting that amount (about $300) in savings for a new car. She has a 2019 Honda, So we think she can get many more years out of it.
6. She works a second job for the census and makes about $800 per month (just started recently). She is putting that in savings.
7. An inheritance is unlikely.
8. I will pay for her to have 2 vacations a year (which I have done since she divorced). So she will have that for "quality of life" as well.

I do have questions...
Would she be better off adding that $300 from the car payment to her mortgage? If she pays $200 extra per month, she reduces the mortgage by 5 years, 10 months.
She wants to start putting money in an IRA. I am thinking she should do a Roth IRA, so she can keep her tax liability low in retirement. But I don't know for sure.
Her ex husband has worked longer and at a higher pay, so I'm sure has a higher social security. When she gets her estimates, are they including what he does? I'm not even sure how that works. How does that work? Is it based on what gives her more?
On the one had, she gets almost $300 a month more waiting until 70 for SS. But it would take 6 years to "make up" the difference. One option could be to retire from teaching and do three more years of census, to get the higher amount at 70. Then fully retire.
I believe she can work the census even if she takes SS at 67 and she can make any amount. Am I correct?
She lives in Missouri. I don't know what benefits there are for low income seniors...is there a place I can start?

While she was not estranged from our family during her marriage, she was controlled by her spouse and treated poorly. We seldom saw her or her children and they moved out of our area long ago. Since 2020, we have become very close again and I have my sister back. It's a true blessing for me. So I want to make sure I do right be her and give her the best advice possible (she wants me to do this...it's not her "thing", she is busy with 2 jobs and she trusts my advice).

Thank you for any advice you can provide.

 

[harllee]

I don't have any specific advice but I want to say what a great sibling you are for helping your sister in this way. Your sister is very lucky to have you.

 

[pacergal]

Do you know her spending/budget and have you run firecalc?
Is there a particular reason she wants to have her house paid off early or can she afford the loan now and the extra you both are putting towards early payoff go into a retirement fund?

I think she could call SS to ask if her Ex's income is counted in her estimate. It may not be. I believe she can receive e the higher of the two, as long as she does not re-marry.

google shows: Missouri Senior Resource Line # 1-800-235-5503

Bless you and your Mom for helping her re-establish her life.
It sounds like she may have been in an abusive situation, which isn't always physical.
Many states have specific help for domestic violence survivors, also.

 

[Teacher Terry]

It’s my understanding that if you retire and are affected by WEP that you can’t collect SS based on your ex-husband’s SS. If I’m wrong I’ll be interested in the information since I’m in a similar position as your sister.

 

[PandaBear]

Do you know her spending/budget and have you run firecalc?
Is there a particular reason she wants to have her house paid off early or can she afford the loan now and the extra you both are putting towards early payoff go into a retirement fund?

I think she could call SS to ask if her Ex's income is counted in her estimate. It may not be. I believe she can receive e the higher of the two, as long as she does not re-marry.

google shows: Missouri Senior Resource Line # 1-800-235-5503

Bless you and your Mom for helping her re-establish her life.
It sounds like she may have been in an abusive situation, which isn't always physical.
Many states have specific help for domestic violence survivors, also.

Thank you for your input. We are working on her budget. I have her current budget, but things will change with the new house, so we are working to determine specifics. Her income will decrease by at least half in retirement, but I am thinking without the mortgage she could make it.

But we are still gathering info. For example, I don't know if her pension has a COLA. We plan to do a Zoom meeting with the system to get some details, we just haven't done it yet.

It’s my understanding that if you retire and are affected by WEP that you can’t collect SS based on your ex-husband’s SS. If I’m wrong I’ll be interested in the information since I’m in a similar position as your sister.

Good to know! Another thing to put on the list! It seems like the more info we gather, the more we need!

 

[DrRoy]

If she would need a car loan later, then she is better off to save the money for a new car. The car loan rate would be higher than a mortgage rate, and she earns interest in the savings in the meantime.

 

[markelp]

Hello, I wrote back in 2020 regarding my sister, who was getting divorced at 56 after 25+ years of marriage That was finalized in 2021. With help from my mom, she just bought a house. She just turned 60 and expects to work until 67.

I am helping her with her finances and thought I'd turn here first for any ideas or suggestions.

The basics are as follows:
1. She has about 175K in an IRA.
2. She is a teacher, but hasn't been working very long. She will get a pension. Based on her current salary, she'll get about 36K per year. I imagine it will go up a little.
3. She has SS but will be highly impacted by WEP. At 67 she would get about $608 per month. If she waits to 70, it goes up to about $895. I do realize those numbers will change due to inflation.
4. Her new home is on a 15 year mortgage. With her paying an extra $200 a month and me paying the same, we can get it down four years, 6 months, to 10.5 years instead of 15. If I bump up my contribution to 3k per year, we can make that 4 years, 11 months reduction. It really doesn't seem to matter if I make one yearly payment or 12 monthly payments.
5. Her car payment finishes in November. She will then start putting that amount (about $300) in savings for a new car. She has a 2019 Honda, So we think she can get many more years out of it.
6. She works a second job for the census and makes about $800 per month (just started recently). She is putting that in savings.
7. An inheritance is unlikely.
8. I will pay for her to have 2 vacations a year (which I have done since she divorced). So she will have that for "quality of life" as well.

I do have questions...
Would she be better off adding that $300 from the car payment to her mortgage? If she pays $200 extra per month, she reduces the mortgage by 5 years, 10 months.
She wants to start putting money in an IRA. I am thinking she should do a Roth IRA, so she can keep her tax liability low in retirement. But I don't know for sure.
Her ex husband has worked longer and at a higher pay, so I'm sure has a higher social security. When she gets her estimates, are they including what he does? I'm not even sure how that works. How does that work? Is it based on what gives her more?
On the one had, she gets almost $300 a month more waiting until 70 for SS. But it would take 6 years to "make up" the difference. One option could be to retire from teaching and do three more years of census, to get the higher amount at 70. Then fully retire.
I believe she can work the census even if she takes SS at 67 and she can make any amount. Am I correct?
She lives in Missouri. I don't know what benefits there are for low income seniors...is there a place I can start?

While she was not estranged from our family during her marriage, she was controlled by her spouse and treated poorly. We seldom saw her or her children and they moved out of our area long ago. Since 2020, we have become very close again and I have my sister back. It's a true blessing for me. So I want to make sure I do right be her and give her the best advice possible (she wants me to do this...it's not her "thing", she is busy with 2 jobs and she trusts my advice).

Thank you for any advice you can provide.

It would be helpful to know the interest rate for the various loans.

Also, is there any credit card debt?

General advice is to build up an emergency fund of six months salary in a high yield savings account, then start paying off high interest debt (credit card, car, mortgage usually in that order). If the mortgage is a low rate, it may make more sense to save rather than make extra payments.

 

[Teacher Terry]

Panda bear, a decrease of half of not a very high income is going to be very difficult. Once she retires she shouldn’t be putting a lot of miles on her car so it should last for years.

I misunderstood and thought the income you listed would be her retirement income. I couldn’t live on half and I am pretty frugal. Hopefully you live in a LCOL area.

 

[PandaBear]

Panda bear, a decrease of half of not a very high income is going to be very difficult. Once she retires she shouldn’t be putting a lot of miles on her car so it should last for years.

I misunderstood and thought the income you listed would be her retirement income. I couldn’t live on half and I am pretty frugal. Hopefully you live in a LCOL area.

I know! That's why I'm concerned. Her whole budget is just about my travel budget! But I also have to tread carefully. She has pride and I can help, but not help "too" much, if that makes sense.

I do live in a very HCOL area and she lives in a low one (her house she is buying is 1600 sq feet with basement and is 267K. Where I live, my sone just bought a 1 bedroom condo for 450K! So that helps. She has a new mortgage for 167K. I feel like if we can get that paid off before she retires, it would be a huge help.

Obviously, since she is just 60 now, we do have a little time to get prepared. But we both want a plan.

 

[PandaBear]

It would be helpful to know the interest rate for the various loans.

Also, is there any credit card debt?

General advice is to build up an emergency fund of six months salary in a high yield savings account, then start paying off high interest debt (credit card, car, mortgage usually in that order). If the mortgage is a low rate, it may make more sense to save rather than make extra payments.

No credit card debt. Car loan will be paid off in November. Emergency fund is small (about $2500) but she is now putting $800 a month to it. It was $5000 but she used $2500 for earnest money for house.
Mortgage is 15 years at 5.3%. If interest rates decrease before she closes in 3 weeks she gets that decrease.
I'm going to pay the rest of the fees (about $2500) so she doesn't blow through her entire fund.

 

[pacergal]

How is her health and does she enjoy teaching? Maybe she could work until 70 for a higher pension and SS?

 

[Teacher Terry]

When she retires could she buy a small condo? One person doesn’t need that size of a house. When raising my kids 5 of us lived in a house that size and thought it was big. It was bigger than most of my friend’s homes).

Even without a house payment that income is going to be hard to live on. Although she should qualify for all kinds of state and federal freebies that are income based so that will help a lot if they still exist.

 

[pb4uski]

... She has SS but will be highly impacted by WEP. At 67 she would get about $608 per month. If she waits to 70, it goes up to about $895. I do realize those numbers will change due to inflation. ...

If she has reasonably good longevity prospects then she should consider waiting until 70 for SS. If she waits until 70 she will get an additional $287/month or $3,444/year and would forgo $21,888. That's a payout of 15.7% and its a COLA adjusted payout. As a point of reference, the payout rate for a life annuity for a 70 yo female is about 8.3%d that's for a fixed benefit, not a COLAed benefit. If she does delay, it might be the best $21,888 investment that she will make.

Another tool to decide an SS claiming strategy is opensocialsecurity.com.

 

[pb4uski]

It’s my understanding that if you retire and are affected by WEP that you can’t collect SS based on your ex-husband’s SS. If I’m wrong I’ll be interested in the information since I’m in a similar position as your sister.

I don't know for certain, but Perplexity AI suggests the opposite. Hopefully, someone who is more in the know will come along and let us know.

If you are retired and your SS benefit is subject to WEP, can you collect based on your ex-spouses work record?

Answer
Yes, if you are retired and your Social Security benefit is subject to the Windfall Elimination Provision (WEP), you can still collect benefits based on your ex-spouse's work record, provided certain conditions are met. To qualify for spousal benefits based on an ex-spouse's earnings record, you must meet the following criteria:

• Marriage Duration: You must have been married to your ex-spouse for at least 10 years.
• Divorce Duration: You must have been divorced for at least two years, or your ex-spouse must already be receiving retirement benefits.
• Age Requirement: Both you and your ex-spouse must be at least 62 years old.
• Marital Status: You must be unmarried at the time of filing for spousal benefits.
• The Windfall Elimination Provision (WEP) affects the Social Security benefits of individuals who receive a pension from employment not covered by Social Security taxes. However, WEP primarily impacts the individual's own Social Security benefits and not the spousal benefits based on an ex-spouse's record. Instead, the Government Pension Offset (GPO) might reduce the spousal benefits if you receive a government pension from non-covered employment.

Therefore, if you meet the above criteria, you can potentially collect benefits based on your ex-spouse's work record, even if your own Social Security benefits are reduced by WEP.

 

[pb4uski]

Also: It's complicated.

https://www.perplexity.ai/search/if-my-ss-benefit-based-on-my-w-vXkIISwDQwifJ..awpRSdw#0

To understand how your spousal benefit will be impacted in this situation, we need to consider both the Windfall Elimination Provision (WEP) and the rules for divorced spousal benefits. Here's an explanation of how these factors interact:

## Impact of WEP on Your Own Benefit

First, it's important to note that the WEP will reduce your own Social Security retirement benefit based on your work record[1]. The WEP applies because you have a pension from work not covered by Social Security.

## Divorced Spousal Benefit Calculation

Now, let's consider your divorced spousal benefit:

1. Your divorced spousal benefit is normally calculated as 50% of your ex-spouse's Primary Insurance Amount (PIA)[3].

2. However, you're only eligible for the higher of either your own retirement benefit or your spousal benefit, not both[3].

## WEP's Indirect Effect on Spousal Benefits

The WEP does not directly reduce spousal benefits. However, it can indirectly affect them in the following way:

1. Your own WEP-reduced benefit is compared to your potential spousal benefit.

2. You'll receive the higher of the two amounts[3].

## Determining Your Benefit

Given that your own benefit (after WEP reduction) is less than 50% of your ex-spouse's benefit, you may be eligible for a combination of benefits:

1. You'll receive your own reduced benefit amount.

2. If the spousal benefit (50% of your ex-spouse's PIA) is higher than your WEP-reduced benefit, you'll receive an additional amount to make up the difference[3].

## Example

Let's say:
- Your ex-spouse's PIA is $2,000
- Your WEP-reduced benefit is $700
- 50% of your ex-spouse's PIA is $1,000

In this case, you would receive:
- $700 (your own WEP-reduced benefit)
- Plus $300 (the difference to reach the $1,000 spousal benefit)

Total benefit: $1,000

## Important Considerations

1. The actual calculation can be complex and depends on various factors, including your age when claiming benefits and your ex-spouse's full retirement age benefit amount.

2. The Government Pension Offset (GPO) could further reduce your spousal benefits if you receive a government pension based on work not covered by Social Security[1].

3. To be eligible for divorced spousal benefits, your marriage must have lasted at least 10 years, and you must be currently unmarried[3].

Given the complexity of these provisions, it's advisable to consult directly with the Social Security Administration or use their official calculators to get an accurate estimate of your benefits[2].

Citations:
[1] Research: The Social Security Windfall Elimination and Government Pension Offset Provisions for Public Employees in the Health and Retirement Study
[2] https://crsreports.congress.gov/product/pdf/IF/IF10203
[3] Ask Larry: Why Isn't My Wife's Spousal Benefit 50% Of My Social Security Retirement Benefit?
[4] https://www.ssa.gov/pubs/EN-05-10045.pdf
[5] How a pension can reduce your Social Security benefits | Vanguard
[6] https://www.calpers.ca.gov/content/cec/member/webcast_learning_guides/Social Security and Your CalPERS Pension Learning Guide.pdf
[7] Program Explainer: Windfall Elimination Provision
[8] See how your pension may affect your benefits

 

[Closet_Gamer]

2019 Honda? She could probably drive that for another 6-7 years pretty easily. I wouldn't really be worrying about a car fund yet. When it is time to replace it a used car would be the way to go. Regardless, keeping that car going for as long as possible is important.

The virtue of getting that mortgage done sooner rather than later is it will free up a lot of monthly cash flow. What interest rate is on the mortgage?

 

[Calico]

Obviously, since she is just 60 now, we do have a little time to get prepared. But we both want a plan.

Maybe yes, maybe no.

You mentioned at the outset that your sister "plans" to work until 67.

Health issues can surprise you, especially after the age of 60. Does your sister (and do you) have a Plan B in case her working years are cut short due to unforeseen health issues, as can happen without warning?

I was healthy for most of my life, until I was diagnosed with cancer at the age of 62. At the time of my diagnosis, I was unsure what the outcome of treatment would be. Happily, I have now been cancer free for six years; I will shortly turn 69 and hope to live many more healthy years.

However, at the time of my diagnosis my situation differed in several ways from your sister's:

1. I paid off my house in 2017, several months before my diagnosis in mid-2018.

2. I was eligible for a full pension in 2020 (more than sufficient to pay my bills).

3. Due to being so close to the full pension, I had the option of retiring when I was diagnosed, if I had decided to do so. My pension and eventual social security (at age 70) would have taken small hits, but it would have been totally doable.

In the end, after successful treatment, I decided to "suck it up" and work until the end of 2020 for the full pension. I'm glad (and fortunate) I was able to stick it out.

Your sister is extremely lucky to have you in her life, and blessed that you and your mom are willing and able to help her. Hopefully she will live a long and healthy life.

I'm just raising the question: will she (or you) be able to carry the mortgage and all the other expenses if her employment is cut short, either for health reasons or other reasons?

 

[Teacher Terry]

Also: It's complicated.

https://www.perplexity.ai/search/if-my-ss-benefit-based-on-my-w-vXkIISwDQwifJ..awpRSdw#0

To understand how your spousal benefit will be impacted in this situation, we need to consider both the Windfall Elimination Provision (WEP) and the rules for divorced spousal benefits. Here's an explanation of how these factors interact:

## Impact of WEP on Your Own Benefit

First, it's important to note that the WEP will reduce your own Social Security retirement benefit based on your work record[1]. The WEP applies because you have a pension from work not covered by Social Security.

## Divorced Spousal Benefit Calculation

Now, let's consider your divorced spousal benefit:

1. Your divorced spousal benefit is normally calculated as 50% of your ex-spouse's Primary Insurance Amount (PIA)[3].

2. However, you're only eligible for the higher of either your own retirement benefit or your spousal benefit, not both[3].

## WEP's Indirect Effect on Spousal Benefits

The WEP does not directly reduce spousal benefits. However, it can indirectly affect them in the following way:

1. Your own WEP-reduced benefit is compared to your potential spousal benefit.

2. You'll receive the higher of the two amounts[3].

## Determining Your Benefit

Given that your own benefit (after WEP reduction) is less than 50% of your ex-spouse's benefit, you may be eligible for a combination of benefits:

1. You'll receive your own reduced benefit amount.

2. If the spousal benefit (50% of your ex-spouse's PIA) is higher than your WEP-reduced benefit, you'll receive an additional amount to make up the difference[3].

## Example

Let's say:
- Your ex-spouse's PIA is $2,000
- Your WEP-reduced benefit is $700
- 50% of your ex-spouse's PIA is $1,000

In this case, you would receive:
- $700 (your own WEP-reduced benefit)
- Plus $300 (the difference to reach the $1,000 spousal benefit)

Total benefit: $1,000

## Important Considerations

1. The actual calculation can be complex and depends on various factors, including your age when claiming benefits and your ex-spouse's full retirement age benefit amount.

2. The Government Pension Offset (GPO) could further reduce your spousal benefits if you receive a government pension based on work not covered by Social Security[1].

3. To be eligible for divorced spousal benefits, your marriage must have lasted at least 10 years, and you must be currently unmarried[3].

Given the complexity of these provisions, it's advisable to consult directly with the Social Security Administration or use their official calculators to get an accurate estimate of your benefits[2].

Citations:
[1] Research: The Social Security Windfall Elimination and Government Pension Offset Provisions for Public Employees in the Health and Retirement Study
[2] https://crsreports.congress.gov/product/pdf/IF/IF10203
[3] Ask Larry: Why Isn't My Wife's Spousal Benefit 50% Of My Social Security Retirement Benefit?
[4] https://www.ssa.gov/pubs/EN-05-10045.pdf
[5] How a pension can reduce your Social Security benefits | Vanguard
[6] https://www.calpers.ca.gov/content/cec/member/webcast_learning_guides/Social Security and Your CalPERS Pension Learning Guide.pdf
[7] Program Explainer: Windfall Elimination Provision
[8] See how your pension may affect your benefits

When I did the calculations it was the GPO that eliminated any spousal benefits for me. Back when I read it on the SS website they warned that is the outcome for most people. However, her pension appears to be small so it is worth the OP exploring.

 

[Koolau]

I'll add my kudos for helping your sister. That's a great thing to do for her.

In general, there are only a few "levers" when planning for retirement. You either try to make more or spend less. You mentioned two vacations you help your sister take. I have no idea how much that costs, but the two of you might consider putting the cost of one of those vacations into paying the mortgage or upping the emergency fund. It's never "fun" cutting costs, but it's important to keep the goal in mind.

As long as you're willing to help her out, it sounds like you have a plan that will w*rk. If you want to tweak the plan, as mentioned, there are only so many things you can do. I hope it w*rks well for both of you.

 

[Rushmore]

Haven’t logged in for a long time, but had to respond to this post. I have not worked since 2008. I live on about 30k/year. My car is used 2014 Prius which I paid cash(sinking fund) for in 2015. It’s not the active/traveling retirement many of you have, but I retired because of ***/ME so it wouldn’t be anyway, own my home, have a freeze on property taxes. Don’t use any low income resources like food banks. Take short trips mostly with my sister. There’s a world of low cost/free things to do. Wish I had a sibling to take me on trips, but non of them are much better than me. 40k a year would be a big increase for me. I think she should be able to do fine.

 

[Teacher Terry]

Haven’t logged in for a long time, but had to respond to this post. I have not worked since 2008. I live on about 30k/year. My car is used 2014 Prius which I paid cash(sinking fund) for in 2015. It’s not the active/traveling retirement many of you have, but I retired because of ***/ME so it wouldn’t be anyway, own my home, have a freeze on property taxes. Don’t use any low income resources like food banks. Take short trips mostly with my sister. There’s a world of low cost/free things to do. Wish I had a sibling to take me on trips, but non of them are much better than me. 40k a year would be a big increase for me. I think she should be able to do fine.

I initially misread that she will have half of the 36k that she earns now and was thinking the same thing as you until I read it again. I live on 36k /year and it’s tight especially since inflation has been high. So his sister will have around 18k yearly in retirement.

I don’t figure the money I make consulting because that could end at any time and ranges between 5-10k year. I use that money for lumpy expenses so I don’t have to use my savings.

 

[Rushmore]

I initially misread that she will have half of the 36k that she earns now and was thinking the same thing as you until I read it again. I live on 36k /year and it’s tight especially since inflation has been high. So his sister will have around 18k yearly in retirement.

I don’t figure the money I make consulting because that could end at any time and ranges between 5-10k year. I use that money for lumpy expenses so I don’t have to use my savings.

Oh, I miss read that too. My bad. My guess is there’s a lot of people living retirement on around 30k a year. I too have some savings but try not to dip into it.

 

[Gumby]

It’s my understanding that if you retire and are affected by WEP that you can’t collect SS based on your ex-husband’s SS. If I’m wrong I’ll be interested in the information since I’m in a similar position as your sister.

That would be the GPO, which has a different calculation. If she is getting a government pension from a job where she did not contribute to social security, they will deduct 2/3 of that pension from the amount of any spousal benefit she would receive (whether from a current or former spouse). Since the maximum social security benefit at FRA is currently $3822 per month and spousal benefit is 50%, that means the maximum spousal benefit is $1911 per month. If, as OP says, she will get $3000 per month in pension from her teaching job, then 2/3 of that would wipe out any spousal benefit. However, if her ex-spouse dies, she can get the survivor benefit (reduced by GPO), which in this case would be $1822.

 

[pb4uski]

So if I understand you right Gumby, if she claims at FRA she would get the higher of 1) the benefit based on her own work record reduced by WEP ($608/month per the OP) or 2) 50% of her ex-spouse's PIA reduced for GPO ($2,000 reduction for 2/3 of $3,000 pension)?

So if I follow you her ex-spouse's PIA would need to be $5,216 or more in order to get any benefit from her ex-spouse's record... $5,216*50% = $2,608, less GPO reduction of $2,000 ( 2/3 of $3,000 pension) =$608. Since the $5,216 exceeds the maximum benefit then she wouldn't get any benefit from her ex-spouse.

Make sense? Not applcable to us but I'm just looking to understand how it works.

 

[Gumby]

Not exactly. If her ex husband had maxed out social security earnings for 35 years, his PIA as of 2024 would be $3822 per month. Spousal benefit is 1/2 of that, or $1911 per month. Pursuant to the GPO, 2/3 of her $3000 per month teacher pension ($2000) would be subtracted. So she would get zero spousal benefit. When you are the survivor, however, you get either your own social security or the PIA of the deceased. So, again, if the ex husband maxed out social security for 35 years his PIA would be $3822/mo and she would get that, minus the GPO offset of $2000. Or, net, $1822 month. While her own WEP adjusted benefit is $608 per month. So, when her ex dies, she would improve her position by $1214 per month by getting a survivor benefit

In my case, the young wife is not eligible for social security on her own because she was a teacher for 30 years and never paid into social security (and the jobs where she paid into before become a teacher do not exceed the required 40 quarters). 2/3 of her teacher pension exceeds my PIA, and since her pension is COLA'd the same as social security, it always will. So, she gets no spousal benefit now and will get no survivor benefit after I'm gone.

Bottom line - the GPO applies to benefits you receive as a spouse or survivor and it can entirely wipe out those benefits. By contrast, the WEP applies to benefits earned on your own record, and the maximum reduction is $587.


Edit to add: yes the SS numbers cited above will increase in the future, but they all move together.