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PDtax
PDtax, CPA firm owner
Category: Social Security
Satisfied Customers: 4099
Experience:  35 years tax and professional advice in all matters money
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I am a teacher in the state of CT and I will retire in three

Customer Question

I am a teacher in the state of CT and I will retire in three years at age 68. I will receive 40% pension benefits because I taught for 20 years not the 30 years that many teachers have. I have SS benefits of $1111/month at full retirement age but supposedly this is reduced to 40% due to my pension. Is this correct even though I am not getting the full pension that it will be a 40% reduction?
Submitted: 1 year ago.
Category: Social Security
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and can assist.

The reduction will apply, because you get a government pension. The size of that pension dues not matter.

Expert:  PDtax replied 1 year ago.

The WEP, Windfall Elimination Provision, will reduce your social security payout, which you say is 40%, of the pension payout. A $2,000 starter pension would cost you $800 per month. If that's the case, it might make sense to defer collecting your social security to age 70, since the benefits would grow 8% per year on the whole amount. You could see increases at $90 per month for every year you can wait. You could see an additional $360 per month, even after the WEP.

Expert:  PDtax replied 1 year ago.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

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