See how your pension may affect your benefits (2024)

FAQs

Does my pension affect my benefits? ›

money you take out of your pension will be considered as income or capital when working out your eligibility for benefits - the more you take the more it will affect your entitlement. if you already get means tested benefits they could be reduced or stopped if you take a lump sum from your pension pot.

If you collect before your full retirement age, there are income limits if you decide to work. Social Security does not consider your pension when it comes to income limits.

Your Social Security benefit might be reduced if you get a pension from an employer who wasn't required to withhold Social Security taxes. This reduction is called the “Windfall Elimination Provision” (WEP). It most commonly affects government work or work in other countries.

Find work that contributes to Social Security. By increasing the number of years you contribute to Social Security, you lessen the impact of the WEP on your retirement benefits. Keep working after you reach full retirement age. Even part-time work that contributes to Social Security can increase your benefit over time.