Taking Social Security early can cost you
September 23, 2009 •
Q: I will be 62 in December. Do I have to file for social security or does my VA disability continue until I do file for social security. Can I claim both or do I have to give up my VA disability?
-Robert, Liberty, Va.
A: Electing to file for early Social Security benefits will not impact your VA disability benefits—you can definitely receive both! That’s the really good news! However, since you were born in 1947, your normal or full retirement age is actually 66. So, if you do decide to file for early benefits at age 62 your benefit will be reduced by approximately 25%. That’s a pretty big pay cut! This doesn’t mean that you shouldn’t apply this fall, but rather that you should take a close look at your finances and determine what makes the most sense. If you need the additional income to make ends meet it probably makes sense to apply for early benefits. On the other hand, if you can wait, your benefit will increase each month you put-off taking Social Security. Obviously, the longer you live the more sense it would make to delay benefits. Typically, it takes 10 or more years to break even if you start benefits at your full retirement age instead of 62. The Social Security website is actually filled with a wealth of great information on this topic including calculators. Thanks for your service and sacrifice.
June Walbert is a CERTIFIED FINANCIAL PLANNER™ practitioner with USAA Financial Planning Services.
Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified Financial Planner TM in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor.
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Can I receive my VA disability, AF retirement and Social Security when I retire at 66.5?
Posted by: Tressey Huron | October 14, 2009 at 03:03 PM
It depends on what type of VA disability income you're in receipt of: Service Connected Compensation (which is the most common) is not affected by SSDI, however depending on how much you make SSI may be different. Non-service connected pension from VA is affected because it's based off income. The best this to do is to call the VA at 800-827-1000 to know where you stand.
Posted by: Tosha | October 10, 2009 at 03:05 PM
Robert aren't you eligable for SSDI since you are collecting VA disability?
Posted by: Michael Bradley | October 09, 2009 at 04:02 PM