Ask Terry Questions pensions and social security

pensions and social security

By Terry Savage on June 04, 2014 | Financial Planning / Retirement


I am currently receiving monthly pension from job I retired from with AT&T after 30 years service. I am also approaching 62 years old and am reviewing my options when to take social security. Are my pension and/or social security payments reduced when social security payments begin?

Terry Says:  I very much doubt that your pension program was “coordinated” with Social Security.  But the best way to find out is to contact the department at AT&T that is sending you the checks.  They will give you the answer for sure.  However, I will give you some advice about Social Security.  You should wait at least until your full retirement age (for you, age 66) to take your benefits.  Any earlier, and you face a huge reduction in benefits — AND it lowers the base upon which future cost-of-living increases are paid!

Here is a chart from the Social Security website showing the reduction in benefits for people who take EARLY SS:

If you start your retirement benefits at age 62, your monthly benefit amount is reduced by about 30 percent. The reduction for starting benefits at age

  • 63 is about 25 percent;
  • 64 is about 20 percent;
  • 65 is about 13.3 percent; and
  • 66 is about 6.7 percent.



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