Ask Terry Questions Suddenly receiving social security in addition to teacher pension

Suddenly receiving social security in addition to teacher pension

By Terry Savage on July 10, 2025 | Financial Planning / Retirement

I am a 78 year old retired teacher receiving a pension and have plan F for insurance. My pension board deducts $234.97 from my monthly check to cover the supplement (AARP HMO) while they pay $109 each month towards my Medicare. I have been paying CMS $207.20 each month.
Suddenly I received a social security check in June for $22,502.00 followed by a letter stating I will receive $910.00 per month ($1,095.30 – $185 for medical insurance). I set up an account on social security and found that these are survivors payments that I had applied for long ago. My ex-husband and I had been married for over 10 years and he had been in the military for 2 years. He passed away in 1998.
This month I received my first $910 check along with a refund check for the $207.20 I paid CMS. Should I stop paying it?
Lastly, my total income last year was $99,674 of which $93,860 was taxable. I deducted mortgage interest and taxes and paid the IRS $176. I am very concerned about the amount of taxes I will owe on the social security. I don’t need the money to live on (as of this writing) but I would like to use a portion of it for much needed repairs on my house.
I have $155,777 in a rollover individual retirement account of which they will send me the amount I have to take out soon. I know nothing about investments but I listen to you on WGN. When the treasury bill was 9.62% I invested $6,000. My house is in a trust (I live with my boyfriend of 25 years and we keep our money separate) and I think I need to put those investments in the trust but that’s after I find out…..Do I stop paying the $207.20 to CMS and how much social security do I set aside for taxes? I heard you discussing the $6,000 deductible today but I don’t think I qualify. Also I think after I make repairs I need to invest that social security. I am so overwhelmed by this sudden change. I appreciate any explanation and/or advice you can give me. Thank you.

Terry Says

Well, this IS a windfall. It’s about time they got around to it!
Yes, you can stop paying CMS for Medicare, as they will now take it out of your SS check.

But also YES, you will have a tax issue. And that is only part of the reorganization of your life that this additional income will bring. I STRONGLY suggest that you talk to a fee-only FIDUCIARY advisor.
Read this article, and Pam Krueger will match you with someone in the area. It is the ONLY way I can be sure you will be in good hands. They will help you figure out the tax implications, and the potential implication of this one time lump sum on your future Medicare premiums.

Likely you should establish withholding on your monthly SS check for the future. But that depends on your total situation, so I can’t advise there. Please at least have one free meeting with one of the advisors Pam selects for you. It can’t hurt. In fact, pls write back and tell me about the recommendations.

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