August 18, 2009 • June Walbert
Q: I understand (just recently) that when I get to the age of 65, that I will NOT be able to collect social security benefits AND my military benefits. How so? Thanks!
-Ruben, Williamsburg, Va.
A: I’ve got good news…it just isn’t “so.” I’ve received a number of questions like yours, Ruben, and I’m curious where folks are getting this misinformation? Let me clear this up: Social Security will not impact your military retirement. Yes, it may impact how much you pay in taxes. This is because military retirement combined with your income from other sources, will likely exceed the thresholds at which a portion of your Social Security is included in your taxable income ($25,000 if you’re single/$32,000 if you file jointly). While that may be bad news, it’s certainly better than no Social Security at all. I feel compelled to point out one really important thing to you. The Social Security Administration does not consider 65 your full retirement age. Take a look at the Social Security Retirement Planner, it's at least 66. So you can go ahead and take the benefit at any time starting at age 62, but know that it will be a reduced amount. Aside from that, relax and enjoy your retirement. Thanks for your service!
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June Walbert is a CERTIFIED FINANCIAL PLANNER TM practitioner with USAA Financial Planning Services, one of the USAA family of companies.
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I was told the military has a new program of some sort for member who didn't retire but was going to. Is there is truth to this matter.
Posted by: garrett Johnson Sr | September 03, 2009 at 09:22 PM
This is a good Company !
Posted by: Military news | August 21, 2009 at 05:59 PM
June:
Thx for a really excellent answer and the additional panache of giving information that, though not specifically asked for, was indeed, critical of the process. Thx also for continuing the tradition of excellence we come to appreciate from USAA. Also refreshing delivery, unencumbered by the "variations on the theme" Suze Orman is famous for. Best!
G. Phil Zepeda, MA, MS, EA, ATA, ATP, CLU,ChFC,CFP
Posted by: Chrematician | August 20, 2009 at 08:42 AM