Can I receive both unemployment benefits and Social Security at 64 while getting severance pay?

Yes, you can receive both unemployment benefits and Social Security retirement benefits simultaneously. They are separate programs and don't directly affect each other. Your severance package won't impact your Social Security benefits, but it might affect your unemployment benefits depending on how it's classified (lump sum vs. salary continuation). Since you're turning 64, remember that filing now means taking benefits before your Full Retirement Age (FRA), which will permanently reduce your monthly amount by about 13.3% compared to waiting until your FRA of 66 and 4 months.

i was in almost the same boat last year!! got laid off at 63 with severance and took both unemployment and SS. no problems but the unemployment office asked a bunch of questions about my severance. make sure u tell them its a lump sum payment for past service not ongoing salary

Something else to consider - if you claim SS now at 64, you'll be subject to the annual earnings limit (which is $21,240 for 2025 if you're under FRA the whole year). Your severance might count toward this limit depending on how it's structured. If you exceed the limit, SSA will withhold $1 for every $2 above the limit. As for your wife's benefits - her benefit amount won't be reduced when you file. However, if she's currently receiving spousal benefits based on your record (rather than her own work record), then yes, her amount could be affected by your early filing. One strategy to consider: claim unemployment now, hold off on SS until you reach 66 and 4 months (your FRA) to avoid the reduction. Even better, wait until 70 for maximum benefits if you can afford to.

To clarify the severance question: The SSA generally doesn't count severance pay toward the earnings limit IF it's paid after employment ends and in recognition of past service. If it's structured as salary continuation (keeping you on payroll), then it would count. As for your wife's benefits: If she's receiving benefits based on her own work record (which is likely since you mentioned she started at 63), then your filing decision won't affect her amount at all. Since you're eligible for "maximum SS," it sounds like you have a solid earnings record. Mathematically, if you can afford it, waiting until 70 to claim would give you about 76% more monthly than claiming at 64 - a significant difference for the rest of your life.

Anyone else notice how IMPOSSIBLE it is to get straight answers from SSA about these questions? I tried calling SSA for weeks about a similar situation and could never get through - always disconnected after waiting forever. Finally used a service called Claimyr (claimyr.com) that got me connected to a real SSA agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed that severance doesn't count for earnings test and that unemployment doesn't affect SS benefits. Worth getting the official answer for your specific situation instead of trusting internet advice.

My husband and I went thru this whole mess last year. Don't forget that unemployment benefits are TAXABLE and if you take SS early, up to 85% of that can be taxable too depending on your other income! The tax bite really surprised us.

Wait, I'm confused about something. If his wife is already taking SS, wouldn't he get more by filing for spousal benefits on HER record until he reaches 70, then switch to his own record? That's what my neighbor did. Couldn't he get like 50% of her amount as a spouse?

THINK ABOUT MEDICARE!!!! You said your turning 64 in June so you NEED to sign up for Medicare next year 3 months before your 65!! This has NOTHING to do with when you take SS but people always forget and then get penalties!!!!

Based on everything in this thread, here's my recommendation: 1. Take your unemployment benefits immediately after separation 2. Don't file for SS until at least your FRA (66+4mo) if you can afford to wait 3. Ensure your severance is properly structured as a lump sum for past service 4. Consider waiting until 70 for SS if financially feasible - that's a 76% higher monthly payment than filing at 64 5. Speak with a tax professional about managing the tax implications Having an exact calculation of your benefit amounts at different ages is crucial for this decision. Get your Social Security statement online at my.ssa.gov or contact SSA directly.