Does unemployment affect social security benefits - NYS Department of Labor question

Good news - unemployment benefits from NYS Department of Labor do NOT affect your future social security benefits at all. UI is not considered earned income by Social Security Administration, so it won't count toward your earnings record or change your benefit calculation. You can collect unemployment now and still get your full social security at 65.

wait i thought any government benefits affected each other?? my neighbor said unemployment counted as income

Good news - unemployment benefits from NYS Department of Labor won't reduce your future Social Security retirement benefits at all. These are completely separate systems. Unemployment is based on your recent work history and wages, while Social Security retirement benefits are calculated from your highest 35 years of earnings. The only thing that could potentially affect Social Security is if you're already receiving early retirement benefits (before full retirement age) and then return to work.

I went through this exact situation two years ago. Filed for unemployment at 63 after my company downsized, collected benefits for about 8 months while job searching. When I applied for social security at 66, there was absolutely no impact. The SSA worker even confirmed that unemployment doesn't show up in their earnings calculations. Just make sure you're meeting your job search requirements with NYS Department of Labor.

The whole system is so confusing! I've been trying to get through to someone at NYS Department of Labor for weeks to ask similar questions but their phone lines are always busy. Getting hung up on constantly or waiting hours just to be disconnected. Recently found this service called Claimyr (claimyr.com) that actually got me through to a real person at NYS Department of Labor in like 10 minutes. They have a video demo showing how it works: https://youtu.be/qyftW-mnTNI. Might be worth checking out if you need to talk to someone directly about your specific situation.

Just to add - while unemployment won't affect your social security calculation, be aware that if you do decide to take early social security while still receiving unemployment, there could be complications with the earnings test. But since you're planning to wait until 65, this won't be an issue for you.

Your neighbor might be thinking of a different situation. If you're already collecting Social Security retirement benefits before your full retirement age and you go back to work, then there are earnings limits that could temporarily reduce your benefits. But unemployment payments themselves don't count as earnings for Social Security purposes.

I was in almost the exact same situation two years ago! I was 62, got laid off, and collected unemployment for about 8 months while job searching. When I finally retired at 66, my Social Security benefits were exactly what the calculator predicted - the unemployment had zero impact. File for your benefits as soon as you're eligible, you earned them.

Just make sure when you file your NYS Department of Labor claim that you're honest about your age and retirement plans if they ask. Sometimes older workers have different job search requirements, but the benefits themselves won't affect Social Security. Also, if you have trouble getting through to NYS Department of Labor to ask questions about your specific situation, I used a service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works.

wait i thought if ur close to retirement they make u do different job search stuff?? like maybe not as many applications or something

The only potential tax consideration is that unemployment benefits are taxable income for federal and state taxes, while Social Security benefits may or may not be taxable depending on your total income. But this is just a tax issue, not an impact on the benefit amounts themselves.

I'm actually dealing with a similar situation right now - I'm 61 and just got laid off from my job of 15 years. I was also worried about how unemployment might affect my future Social Security benefits, so I did a lot of research and even spoke with someone at the Social Security Administration. They confirmed what others have said here - unemployment benefits are NOT counted as earned income for Social Security purposes and won't impact your benefit calculation at all. The Social Security Administration only looks at wages from employment and self-employment income when calculating your benefits. Unemployment insurance is considered an insurance benefit, not earnings. So you can definitely file with NYS Department of Labor without any concerns about your future Social Security. I filed mine last week and feel much better knowing it won't hurt my retirement plans.