At age 65, I am eligible for a lifetime monthly vested benefit in the amount of a few hundred dollars from my former employer (a non-governmental firm). In the company's benefits handbook, this vested benefit is called "Your straight life annuity monthly benefit".

Shortly after this benefit commences, I am planning to apply for the social security income as well. My former employer did not have any pension plan at the time of my separation from the company but a 401k program, and a vested benefit, so my retirement income will be monthly social security + 401k + monthly vested benefit.

I wanted to know if this monthly vested benefit will reduce my monthly social security income? If yes, would it help if I take the entire vested benefit as a lump sum (if such an option is available) so it won't show up as a monthly income when I apply for my social security benefit?

1 Answer 1



If the pension is from an employer that withheld Social Security taxes from your paychecks, it won’t affect your Social Security benefits.

  • RonJon, thanks for the response. By social security taxes, do you mean the FICA?
    – Anthony
    Jun 3, 2021 at 23:18
  • @Anthony ssa.gov/thirdparty/materials/pdfs/educators/… "FICA helps fund both Social Security and Medicare programs". FICA was the combo of what are now Social Security Tax and Medicare Tax. So... yes.
    – RonJohn
    Jun 3, 2021 at 23:44
  • Thank you so much. This helps a lot and takes aways my fear about adjust social security income
    – Anthony
    Jun 4, 2021 at 0:01

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