Just to add one more important point - you might want to compare what you'd get from your own retirement benefit (potentially reduced by WEP if your teaching wasn't covered by Social Security) versus your survivor benefit (reduced by GPO). In some cases, your own benefit might actually be higher, especially if you wait until your Full Retirement Age or later to claim it. Rules get complicated with the interplay between these provisions, which is why getting professional advice can be helpful. When I finally spoke with SSA, they ran both calculations for me, which was extremely helpful in my decision-making.

I'm so sorry for your loss, Beatrice. Navigating Social Security after losing a spouse is incredibly overwhelming, and the terminology doesn't help at all! Just wanted to add that since you mentioned working 12 years in the private sector, you should definitely ask SSA to run a detailed comparison. Sometimes people are surprised to find their own retirement benefit (even with WEP reduction) could be better than the GPO-reduced survivor benefit. Also, don't feel bad about the "windexing" mix-up - I've heard people confuse all sorts of Social Security terms! The representatives deal with genuine questions about everything imaginable, so I'm sure they've heard much stranger things than that. One more thing to consider: if your survivor benefit calculation does end up being very low due to GPO, you might want to explore whether delaying your claim could help in any way, or if there are any other benefits you might be eligible for. The rules are so complex that sometimes there are provisions that can help that aren't immediately obvious.

Thank you all for the helpful information! One more question - if my husband decides to keep working after he starts collecting benefits (he only plans to work part-time), would that affect my spousal benefit at all?

One thing that might help clarify this is to think of it in terms of timing strategy. Since you're 60 and your husband is 62, you have some time to plan this out optimally. Here's what I'd suggest considering: 1. Your husband could file at 62 and get his reduced benefit (~75% of his PIA) 2. You could wait until your FRA at 67 to claim spousal benefits and get the full 50% of his PIA ($1,400 based on your numbers) 3. This gives you 5 years to potentially work part-time and build up some of your own Social Security credits if desired The key insight that helped me was realizing that spousal benefits are calculated independently from what your spouse is actually receiving. So even if he takes the early filing reduction, your spousal benefit potential stays at that full 50% of his PIA as long as you wait until your FRA. Also, definitely get a my Social Security account set up online if you haven't already. The benefit estimators there will give you personalized numbers based on both of your actual earnings records, which is much more accurate than trying to calculate it manually.

Just wanted to add that if your daughter is consistently working part-time, she should also keep detailed records of her earnings and work history. Sometimes there are errors in SSA's records, and having your own documentation can help resolve discrepancies later. Also, encourage her to create a my Social Security account online once she has a few years of work history. She can track her credits in real-time and get benefit estimates as her situation evolves. It's much easier to spot and fix errors early rather than years down the road when she's ready to apply for benefits. The fact that you're planning ahead for her future shows great foresight - many people don't think about this until it's too late to make strategic decisions about work history.

As someone who's navigated similar waters with a family member, I wanted to add that you might also want to look into your state's disability services and vocational rehabilitation programs. Many states offer job training, assistive technology, and workplace accommodations that could help your daughter increase her earning capacity while managing her health condition. These programs sometimes partner with employers who are specifically looking to hire people with disabilities, and they often provide ongoing support to both the employee and employer. It could be a pathway to higher wages or more stable employment, which would improve her future Social Security benefit calculations. Also, don't overlook that some part-time positions offer better hourly rates than minimum wage - remote customer service, data entry, or specialized skills she might develop could significantly boost those earnings within the same limited hours she can work.

Thanks everyone for all the helpful responses! Just to summarize what I've learned: 1. My private sector annuity won't reduce my actual SS benefit amount 2. However, it will count as income for tax purposes and might make my SS benefits taxable 3. I should consider tax withholding from my SS checks to avoid surprises 4. Since I'll be claiming at my FRA, the earnings test won't apply 5. I definitely need to consult with a tax professional before I retire This forum has been so helpful - much clearer information than I got from my financial advisor!

You've got a great summary there! One additional tip from someone who went through this transition recently - consider doing a "practice run" with your tax situation before you officially retire. You can estimate your combined income (annuity + half your projected SS benefit + any other income) and see where you'll fall tax-wise. Also, don't forget that if you have a traditional 401(k) or IRA, those withdrawals will also count toward your combined income for SS taxation purposes. It all adds up quickly! Having that tax withholding set up from the start like others mentioned is definitely the way to go. Good luck with your retirement planning - sounds like you're being smart about researching everything ahead of time!

For future reference, here's what I learned from my experience: The SSA and Medicare systems don't communicate well. Your COLA letter comes from SSA showing your gross benefit increase. Your Medicare Premium letter comes separately showing what you'll pay for Part B and any IRMAA surcharges. Then if you have a Medicare Advantage or Part D plan, those premiums may be deducted directly from your Social Security. Add in possible tax withholding, and you need to do the math yourself to figure out your actual deposit amount. The online MySocialSecurity account usually doesn't update with the new detailed breakdown until mid to late January.

This is such a common issue that trips up so many of us! I went through the exact same panic last year when my deposit was way different from my COLA letter. What helped me was creating a simple spreadsheet to track all the deductions: COLA amount minus Part B premium minus any IRMAA surcharge minus Medicare Advantage/Part D premium minus tax withholding (if any) = actual deposit amount. Now I do this calculation every December so I know what to expect in January. It's frustrating that we have to be our own accountants, but at least once you understand the system it makes sense. The key thing to remember is that your COLA letter is just showing the gross benefit increase - it doesn't account for any of the deductions that come out before your money hits the bank.