Accurate income tax estimate when receiving pensions and then a SocSec pension.
I live and worked in Illinois. I worked for two employers (and had SocSec taxes taken out of wages for both). Last year, I retired at 65 and began receiving both pensions. At full SocSec retirement (66 and 8 months), I intend to apply and receive SocSec pension.
Would there be either/both Fed and State taxes on my SocSec pension benefits?
Terry Says
This is the perfect time to do some real financial planning around retirement income. If you have a smart advisor, you may find it worthwhile to wait until age 70 to collect SS, since you have other pension income. Your base check will increase by 8% a year for every year you wait — and that’s the base upon which future cost of living adjustments will be made.
To find a Fee-ONLY — FIDUCIARY — planner use this link: Pam Krueger Wealthramp – Terry Savage
Even one meeting might save you a lifetime small fortune. But if you just want to know the taxes that might apply to your annual income if you stick with your original plan, consult a CPA — and then arrange to have perhaps 20% withheld from your SS deposit for taxes.