Trying to plan for your retirement — but can’t understand the complicated rules for calculating Social Security benefits when you have your own benefit and a spousal benefit?
You’re not alone! Most people find this really perplexing…
…and when you add in a spouse that’s affected by the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) to the mix, the rules become even more tangled.
If you have a scenario where both spouses are subject to these rules, it can really seem like the convoluted rules are setting you up to fail! In a case like this, it can mean that one spouse could be forced to have their Social Security benefit calculated with the dual penalties from both the WEP and GPO (at the same time!)
This application of both of these rules is not necessarily a “double penalty,” but rather a separate type of penalty on each of the separate benefits.
Don’t worry if it all seems hopelessly confusing. I’ll explain all of this below.