Is Social Security offset by military retirement?
Generally, there is no reduction of Social Security benefits because of your military retirement benefits. You'll get your full Social Security benefit based on your earnings. While you're in military service, you pay Social Security taxes, just as civilian employees do.
An award of VA disability benefits, also known as service-connected disability compensation, is not based on income, so you can receive VA disability compensation and Social Security disability insurance (SSDI) at the same time. It is also possible to receive SSI and VA pension at the same time.
- Most types of income received by a veteran and his or her spouse are counted by the V.A. when considering eligibility for a V.A. pension. This includes earnings, profits from a business, Social Security and other retirement and disability payments, and interest and dividends.
- Basically, if you have had a VA service-connected disability rating for 5 years or more, the VA must prove your condition has improved on a sustained basis before they can reduce or terminate your disability rating. After 10 years, the VA can only reduce your rating; they cannot terminate it (absent proof of fraud).
- Veterans Compensation Benefits Rate Tables - Effective 12/1/17
Dependent Status 70% 100% Veteran Alone $1,365.48 $2,973.86 Veteran with Spouse Only $1,481.48 $3,139.67 Veteran with Spouse and One Parent $1,574.48 $3,272.73 Veteran with Spouse and Two Parents $1,667.48 $3,405.79
In addition to Social Security disability benefits, veterans who are at least 10 percent disabled as a result of military service can receive disability compensation from the Department of Veterans Affairs ( VA ). Disability pensions are also available to wartime veterans with limited income.
- Since 1957, if you had military service earnings for active duty (including active duty for training), you paid Social Security taxes on those earnings. Since 1988, inactive duty service in the Armed Forces reserves (such as weekend drills) has also been covered by Social Security.
- Although disabled veterans can receive VA and SSDI benefits at the same time, different agencies or administrations still pay these benefits. These separate qualification processes mean some veterans can get VA disability but won't qualify for Social Security Disability Insurance (SSDI).
- Permanent and total disability. You have a permanent and total disability if you cannot engage in any substantial gainful activity because of your physical or mental condition.
A. No. Generally speaking, a corporate pension or any other form of retirement income — interest from an investment account, for instance — won't affect Social Security benefits. The amount you get is determined by your income history, not by other retirement money you may have coming in.
- A: Social Security retirement benefits may be affected by a variety of factors, but your earned income is one of the most important. Your benefits in retirement are partly dependent on the income you received while working, since Social Security taxes vary based on that amount.
- Can my pension be reduced? Answer: The short answer is no. Just because the stock market has been reeling and the economy is in a major funk, your employer can't reduce the size of the pension you've earned or take it away from you. If you have a defined-benefit pension, your employer is on the hook.
- In June 2011, the average Social Security benefit was $1,180.80 per month. The maximum possible benefit for a worker retiring at age 66 in 2011 is $2,366. But to get this amount, the worker would need to earn the maximum taxable amount, currently $106,800, each year after age 21.
Updated: 3rd October 2019