Some veterans are eligible for extra social security credits. Learn how your Social Security pay is impacted by military service and get tips on how to increase your benefits.
Advertising Disclosure.Advertiser Disclosure: The Military Wallet and Three Creeks Media, LLC, its parent and affiliate companies, may receive compensation through advertising placements on The Military Wallet. For any rankings or lists on this site, The Military Wallet may receive compensation from the companies being ranked; however, this compensation does not affect how, where, and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner,” the indicated company is a corporate affiliate of The Military Wallet. No tables, rankings, or lists are fully comprehensive and do not include all companies or available products.
The Military Wallet and Three Creeks Media have partnered with CardRatings for our coverage of credit card products. The Military Wallet and CardRatings may receive a commission from card issuers.
Opinions, reviews, analyses & recommendations are the author’s alone and have not been reviewed, endorsed, or approved by any of these entities. For more information, please see our Advertising Policy .
American Express is an advertiser on The Military Wallet. Terms Apply to American Express benefits and offers.
The transition to civilian life has many financial planning milestones—one of the most vital involves understanding how military service influences Social Security benefits. The intersection of military benefits and Social Security might seem complex, but understanding it can help ensure you retire with enough money to live comfortably.
In this article, we’ll cover how military service and military retirement pay affect Social Security, along with 6 tips you can use to increase your Social Security benefits.
We also have a detailed page that explains Social Security benefits for veterans with disabilities.
Yes, servicemembers can receive both military retirement and Social Security benefits without reducing their Social Security pay.
Just like civilian employees, military members pay Social Security taxes on their earnings, meaning they contribute to the Social Security system and are eligible for Social Security benefits upon reaching retirement age.
Furthermore, veterans who served during certain years are eligible for extra Social Security benefits.
Select a VA Home Loan Option to Continue:
Explore My Options
Yes, you are eligible for additional Social Security credits if you served in the military between 1940 and 2001. Military service after 2001 is not eligible for these extra Social Security credits.
A Social Security credit is a basic unit used to calculate eligibility for Social Security benefits. These credits are essentially how the Social Security Administration (SSA) keeps track of how long you’ve worked and contributed to the Social Security system through payroll taxes. You earn these credits based on your yearly work income, and the more credits you’ve earned and the longer you’ve worked, the higher your benefit amount will be.
The credits you earn for military service are factored into your lifetime earnings and used to calculate your Social Security Benefits. How much this impacts your Social Security pay depends on when you served and for how long.
Before 1956, Social Security taxes weren’t automatically taken out of military paychecks.
However, the government worked out a plan that would credit you with earnings of $160 for each month you served during those years as long as you met at least one of the following requirements:
If you served during this time period, the extra credits will be added to your record when you apply for Social Security. The only caveat, you can’t receive credit if you already receive a federal benefit based on the same year(s) of service.
You can contact your local Social Security office for additional details and guidance.
Servicemembers who were on active duty between 1956 and 1978 are also eligible for a Social Security benefit. This group qualifies for $300 in additional earnings for each calendar quarter in which they received basic active duty pay.
If you served any time before 1968, your credits get added to your account when you apply for Social Security.
If you served on active duty between 1978 and 2001, for every $300 in active duty basic pay, you get an additional $100 in earnings credited up to a maximum of $1,200 per year.
Your service should already be accounted for when you apply for Social Security if you served any time after 1968. However, you should be prepared to verify this information, which is one more reason why your DD Form 214 (military service record) is so important!
Servicemembers can apply for Social Security benefits online, by phone at 1-800-772-1213 between 8:00 am and 7:00 pm Monday through Friday, or by visiting your local Social Security office.
Check your VA Home Loan eligibility and get personalized rates. Answer a few questions and we'll connect you with a trusted VA lender to answer any questions you have about the VA loan program.
Many people take Social Security benefits as soon as they are eligible to begin receiving them, which for most Americans is age 62. But just because you’re eligible to start receiving Social Security benefits doesn’t mean you should take them immediately.
Here are a few things to consider regarding Social Security benefit timing.
In general, you can begin receiving Social Security Benefits at age 62, but in many cases, it’s worth delaying your start date if possible.
This is because the SSA reduces payments for those who begin receiving benefits before reaching their full retirement age (FRA). The FRA is the age at which beneficiaries can receive full Social Security Benefits, which, until 2002, was age 65 for everyone. The reduction helps incentivize people to wait longer to accept benefits so the system remains financially balanced.
The table below shows your FRA based on the year you were born.
| If You Were Born In: | Your Full Retirement Age (FRA) Is: |
|---|---|
| 1937 or earlier | 65 years of age |
| 1938 | 65 and 2 months |
| 1939 | 65 and 4 months |
| 1940 | 65 and 6 months |
| 1941 | 65 and 8 months |
| 1942 | 65 and 10 months |
| 1943 to 1954 | 66 years of age |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 years of age |
If you accept your benefits after reaching your FRA, you’ll get the full amount due to you with no reduction.
When you take Social Security benefits early, the amount you receive each month is reduced based on how many months before FRA you start collecting benefits. These reductions affect your benefits for the rest of your life.
Your total Social Security amount is reduced by 0.55% for every month you are under your FRA, up to 36 months. If you start taking benefits more than 36 months before retirement age, your benefits will be further reduced by 0.42% a month.
Let’s look at the reduction formula with an example:
Say your FRA is 66. Your Social Security benefits will decrease by about 6.67% per year (or about 0.56% per month) for the first three years early that you claim. If you claim more than three years early, the reduction increases to about 5% per year (or about 0.42% per month) for each additional year.
Here’s another way of viewing it:
If your FRA is at 67 and you start claiming Social Security benefits at age 62, you face a permanent reduction of about 30%.
If your FRA is 66, and you claim at age 62, you face a permanent reduction of 25%.
It’s important to note if you accept Social Security benefits before reaching FRA, your reduction in benefits will be permanent.
The Social Security System greatly benefits taxpayers who paid into the system over the years.
Unfortunately, it can be confusing if you haven’t had time to research available Social Security Benefits and the situations that may entitle you to additional benefits. Failure to understand this system could cost you money at a time when you can least afford the loss and when you should be enjoying your retirement.
Below are tips to increase your Social Security benefits and ease your retirement years.
As mentioned above, you can earn less than or equal to the normal Social Security Benefit for your lifetime earnings, depending on when you begin taking Social Security payments. But you should also know that you can even get additional Social Security credits by delaying the start date of your benefits after your FRA.
The SSA offers delayed retirement credits, which reward people who collect Social Security late. For each year you delay past your FRA, up to age 70, your Social Security retirement benefits increase due to delayed retirement credits.
Delayed retirement credits accrue monthly and increase your benefits by a certain percentage, depending on your year of birth. For those born in 1943 or later, the increase is 8% yearly or about 0.67% monthly. These credits can be accumulated until you reach age 70, after which there is no additional benefit increase for delaying.
For example, if your FRA is 67 and you delay claiming until age 70, your Social Security benefits would increase by 24% over what you would have received at age 67.
If you collect Social Security while still working, your benefits can also be temporarily reduced.
Here’s how it works:
It’s important to note that any benefits withheld due to exceeding the earnings limit are not “lost.” Once you reach FRA, your monthly benefit amount will be increased to account for months when your benefits were withheld due to excess earnings.
Furthermore, additional earnings can also increase your overall benefit amount, as Social Security benefits are calculated based on your highest 35 years of earnings. If your earnings in later years are higher than any previous years used to calculate your benefit, your benefit will be recalculated and could increase.
The government establishes income thresholds to determine who pays taxes on benefits and who doesn’t.
If half of your Social Security income and your other forms of income (such as investment earnings, pension payments, tax-exempt interest, and other wages) surpass the threshold, you may find yourself owing taxes on benefits.
| Social Security Tax Limit | |
| Single Filing | If your income is between $25,000 and $34,000, up to 50% is taxable. |
Over the years, you have probably noticed an annual Social Security statement arriving in your mailbox. However, the Social Security Administration no longer mails these statements without filling out and mailing a request form. This typically has a four to six week turn around. However, you can register for a free online account at SSA.gov, where you can immediately view your annual earnings statement and projected Social Security Benefits when you reach retirement age.
It is important to pay attention to the information contained in this statement. Carefully review your statement each year to ensure your earnings are correctly reported. This history of your earnings plays a vital role in determining your Social Security benefits.
If you notice errors in the statement, it is your responsibility to report these mistakes. Correcting an error in your lifetime earnings could significantly increase benefits.
The government applies an annual Cost of Living Adjustment (COLA) to Social Security Benefits each year. The COLA is based on the Consumer Price Index or CPI. The increases depend on changes in the cost of living over the course of the previous four quarters.
Generally, Social Security benefits are protected from most debt collection actions. This is not the case with back taxes, outstanding federal student loans, child support, and alimony. If you have any of these debts lurking in your past, take the necessary steps to satisfy your debt obligations to protect your benefits from garnishments.
When you understand how your benefits work and what you can do to increase your Social Security paycheck, you create financial and personal peace in your later years. For many retirees, this paycheck may be the only income they will receive during their retirement years. Whether Social Security is your only source of income or a supplement to other sources of income, you must fully receive the benefits to which you are entitled.
If you are unsure where you stand with your benefit amounts, you can contact the Social Security Administration to request a copy of a current benefits statement. Your individualized statement will include payouts for benefits taken at age 62, at your FRA, and at age 70. Statements are also readily available on the SSA.gov website.
You’ll need to assess your financial situation to determine your need and time frame for accessing benefits. If you have the means to support yourself, you may find it beneficial to wait as long as you can before requesting benefits.
If you cannot live without the additional funds before reaching your full retirement age, you should consider taking the reduced benefit payments to stay on track financially. The decision should be carefully based on your needs, your spouse’s age, and even your life expectancy based on your present medical situation and family history.
When you come of age to start drawing Social Security, you will not only receive your full Social Security benefits but also added benefits for serving in the military if you served in the years mentioned above. Remember to verify you are receiving this additional benefit when applying. You should also double-check for this benefit when applying for Social Security survivor benefits to ensure survivors receive additional military service credits.
Taking your Social Security and military retirement pay into account with your other investments, such as the Thrift Savings Plan or a Roth IRA, can help you secure your finances and afford a comfortable retirement.
Ryan Guina is The Military Wallet’s founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air National Guard.
Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then.
Featured In: Ryan’s writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine (print and online editions), Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.
in a wheelchair with an American flag behind her." width="249" height="166" />
About the comments on this site:
These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Great article. I’m trying to verify my special credits were added. Do you have an example of what the earnings page would look like to show they were automatically added? I would think the column for Social Security Earnings would differ from the column Medicare earnings. Am I right about that? I’m about to start drawing and want to make sure I get all the benefits coming. Thx, Bob
Hello Bob, I don’t have an example. The only way to know for certain is to contact the Social Security Administration. Best wishes!
Hi, is the amount I see in my social security statement include my military service as the total amount with my service, or will I receive an extra amount be added when I apply for social security? I served from 1975 to 1999 Thank you
Kevin T. Hawkins
MSgt USMC (Ret.)
Hello Robert, Yes, I believe you are, based on the information provided by the Social Security Administration. You will need to contact the SSA office for more information and you may be required to provide proof of service. Best wishes!
Explore Our Site:
© Three Creeks Media, LLC 2024. All Rights Reserved.
Presented by Mortgage Research Center, LLC. A mortgage licensee. NMLS ID 1907. Equal Housing Lender.
The Military Wallet is a property of Three Creeks Media. Neither The Military Wallet nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on The Military Wallet is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on The Military Wallet should not be attributed to the Dept. of Veterans Affairs, the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on The Military Wallet is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.
Advertiser Disclosure: The Military Wallet and Three Creeks Media, LLC, its parent and affiliate companies, may receive compensation through advertising placements on The Military Wallet. For any rankings or lists on this site, The Military Wallet may receive compensation from the companies being ranked; however, this compensation does not affect how, where, and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner,” the indicated company is a corporate affiliate of The Military Wallet. No tables, rankings, or lists are fully comprehensive and do not include all companies or available products.
Editorial Disclosure: Editorial content on The Military Wallet may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of The Military Wallet.
Information from your device can be used to personalize your ad experience.
