Can you collect military retirement and social security simultaneously? This is a common question among veterans and active-duty military personnel as they approach the end of their service. The answer is both yes and no, depending on various factors. In this article, we will explore the intricacies of collecting both forms of retirement benefits and help you understand the rules and regulations surrounding them.
Military retirement and social security are two distinct programs designed to provide financial support to individuals after they stop working. Military retirement is a benefit that is earned during active service, while social security is a federal insurance program that provides income to retirees, survivors, and disabled individuals.
Understanding Military Retirement
Military retirement benefits are based on your length of service and your base pay. Generally, you become eligible for military retirement after 20 years of active duty. The benefit is calculated using a formula that takes into account your highest 36 months of base pay and your years of service. Once you reach eligibility, you can begin collecting your military retirement at age 60, or you can wait until age 62 to receive a larger monthly benefit.
Understanding Social Security
Social security benefits are based on your earnings history and are designed to replace a portion of your income after retirement. To be eligible for social security, you must have worked and paid into the program for a certain number of years. The age at which you can start collecting social security benefits varies depending on your birth year. For those born in 1960 or later, the full retirement age is 67.
Can You Collect Both Benefits?
Yes, you can collect both military retirement and social security benefits simultaneously. However, there are some important considerations to keep in mind:
1.
Offsetting Social Security Benefits
If you collect military retirement before reaching age 62, your social security benefits may be reduced. This is because the government considers your military retirement income as a form of earnings, which can affect your social security benefit calculation.
2.
Winding Down Your Military Retirement
If you decide to collect social security before you are eligible for military retirement, your military retirement benefit will be reduced by the amount of social security you receive. This reduction is known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
3.
Delaying Social Security Benefits
You can choose to delay collecting social security benefits until you reach full retirement age. This will increase your monthly benefit amount. However, your military retirement will not be affected by this decision.
Conclusion
In conclusion, you can collect both military retirement and social security benefits, but it’s essential to understand the rules and regulations surrounding these programs. By carefully planning your retirement strategy, you can maximize your benefits and ensure a comfortable retirement. Always consult with a financial advisor or a military retirement specialist to help you navigate the complexities of these programs.
