Get the basics on retirement planning and pension benefits, such as how Social Security works, retiring from the civil service, and managing a private pension. Show
On This Page
Video: Determining a Target Retirement Saving RateMake a plan with the Retirement Saving worksheet. Learn more at Savings Fitness. Social Security and How It WorksSocial Security provides you with a source of income when you retire or if you cannot work due to a disability. It can also support your legal dependents (spouse, children, or parents) with benefits in the event of your death. What’s Social Security?Social Security is a program run by the federal government. The program works by using taxes paid into a trust fund to provide benefits to people who are eligible. You’ll need a Social Security number when you apply for a job. Find how to apply for a Social Security number or to replace your Social Security card. How do benefits work, and how can I qualify?While you work, you pay Social Security taxes. This tax money goes into a trust fund that pays benefits to:
Each year you work, you’ll get credits to help you become eligible for benefits when it’s time for you to retire. Find all the benefits the Social Security Administration (SSA) offers. There are four main types of benefits that the SSA offers:
How to Open a “my Social Security” AccountIf you receive or will receive Social Security benefits, you may want to open a "my Social Security" account. This online account is a service from the SSA that allows you to keep track of and manage your SSA benefits. You can also make changes to your Social Security record. How to Find More HelpIf you have specific questions about your Social Security benefits, you can:
Protecting Your Private Pension BenefitsRead up on how to correct calculation errors. Find out if your pension is covered if the company defaults. See if there's an unclaimed pension owed to you or someone you know. Avoid Errors in Pension Calculation and Get Help Fixing ThemIf your job is covered by a traditional pension plan, make sure you get the pension amount you're owed.
Federal Insurance for Private PensionsIf your company runs into financial problems, you're likely to still get your pension. The Pension Benefit Guaranty Corporation (PBGC):
Is Your Pension Insured?
Find an Unclaimed PensionMore than 80,000 people in the U.S. have not claimed the defined benefit pensions they've earned. Find out if you, or someone you know, is owed a pension. Civil Service RetirementIf you've retired from the federal government or plan to, get to know the Office of Personnel Management (OPM)'s retirement services. You can contact them for help with your federal retirement benefits. Federal Employee Retirement Planning and ManagementOPM has information to help you:
Thrift Savings Plan for Current EmployeesAs a current federal employee, you can contribute to the Thrift Savings Plan (TSP). The TSP offers the same types of savings and tax benefits as a 401(k) plan. Retirement Credit for Military ServiceMilitary service does not automatically count toward civil service retirement. To receive credit for military service performed after 1956, you must pay a deposit. Federal Taxes on Government PensionsYour pension or annuity payment may be taxable. Find out with the online tool Is My Pension or Annuity Payment Taxable? Survivors of Federal Employees and RetireesIf you’re the survivor of a federal employee or retiree, you may qualify for death and survivor benefits. Visit the OPM website to report the death of a federal employee or retiree and apply for death benefits. Saving for RetirementRetirement requires a lot of planning and consideration. In addition to finances, you need to think about when and where you’ll retire. Experts advise that you may need as much as 80 percent of your pre-retirement income to continue your current standard of living. The exact amount will depend on your individual needs. Questions To Ask Yourself Before RetiringAs you plan, consider these important questions:
Tools To Help You Prepare for RetirementTo begin planning for your retirement:
Last Updated: October 28, 2022 TopDo you get less Social Security if you have a pension?How much will my Social Security benefits be reduced? We'll reduce your Social Security benefits by two-thirds of your government pension. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be deducted from your Social Security benefits.
Can you collect Social Security and a pension at the same time?Yes. There is nothing that precludes you from getting both a pension and Social Security benefits. But there are some types of pensions that can reduce Social Security payments.
How much will my Social Security be reduced if I have a private pension?The WEP may apply if you receive both a pension and Social Security benefits. In that case, the WEP can reduce your Social Security payments by up to 50% of your pension amount. This reduction is known as the WEP PIA.
What type of pension reduces Social Security benefits?Their benefits are reduced by two-thirds of their government pension — and can be eliminated entirely if that two-thirds exceeds the Social Security payment. Changes in the amount of a non-covered pension generally do not affect the Social Security benefit.
|