Have you ever worked in a government job where you didn’t pay Social Security taxes? If that job also allowed you to earn a pension, then it’s critical that you understand the Government Pension Offset, or GPO.
The Government Pension Offset rule can drastically reduce, or even completely eliminate, your Social Security spousal or survivors’ benefits. That’s why it’s so important that if you ever worked in a public service job and earned a pension from your position, you take the time to learn everything you can about the GPO and how it could impact your Social Security income.
The Government Pension Offset’s mechanics are really simple: Your survivors’ or spousal benefits from Social Security will be reduced by an amount equal to two-thirds of your gross pension.
That’s a nasty surprise for the people who didn’t know about it, or fully understand how to plan for it. To avoid finding yourself in that situation, education is key. I’m sharing the top 7 questions I receive about the Government Pension Offset to help provide just that, so you can better plan for a successful retirement.