Does Social Security count pension and deferred comp as income for earnings limit? Plus ex-spouse survivor benefit confusion

The earnings limit only applies to wages or self-employment income. Pensions, annuities, investment income, interest, capital gains, and other government benefits do NOT count toward the earnings limit. Only actual work counts! I was in a similar situation. When I started collecting at 62, I was worried because I had a pension, 401k distributions, AND some part-time consulting income. SSA only cared about the consulting work income, not the other sources. For the death certificate issue, I recommend using Claimyr (claimyr.com) to get through to a real SSA agent. I had a similar documentation problem that felt impossible to solve through normal channels. The Claimyr service got me through to a representative in about 15 minutes who explained that SSA can verify death information internally in many cases. You can see how it works here: https://youtu.be/Z-BRbJw3puU - it saved me hours of frustration.

Regarding the earnings test, only gross wages and net self-employment income count toward the annual limit. Your pension, deferred comp, and any potential survivor benefits are completely exempt from the earnings test calculation. However, you're correct that for determining Medicare IRMAA (Income-Related Monthly Adjustment Amount), your pension, deferred comp, Social Security, and practically all other income sources will count. For the death certificate issue, there's a workaround. Since your ex-husband was already receiving Social Security benefits when he passed, the SSA should already have his death recorded in their system. You need to specifically request to speak with a Claims Specialist who can access the Numident database, which contains death information. Explain that you're inquiring about potential survivor benefits as a divorced spouse married more than 10 years, and they should be able to verify his death internally. If you were married 19 years and never remarried, you definitely qualify for divorced spouse survivor benefits if they would be higher than your own retirement benefit.

just fyi the earnings limit for 2023 is $21,240, not $23,400. and for 2024 it's $22,320. so by 2025 it might be around $23,000-$24,000 based on yearly increases. they change it every year based on inflation

Going through a similar situation with my ex-spouse benefits. I was married for 22 years and trying to figure out if I should take my own benefits or my ex-husband's. I had to provide our marriage certificate AND divorce papers even though SSA already had both on file from when I applied for a replacement card years ago! They make everything so difficult! For the death certificate issue, try contacting your local Congressperson's office. My sister had a similar issue and her Congresswoman's staff helped resolve it in about a week. They have dedicated contacts at federal agencies like SSA.

I always thought pensions counted toward the earnings limit too! I've been working part time and keeping it under the limit because I thought my teacher's pension was already taking up most of my "allowance." Does anyone know if I can ask Social Security for the money they withheld based on this misunderstanding? Been retired for 3 years now...

for the death certificate problem, try calling the vital records office in NJ and explain your situation. sometimes they can make exceptions if you explain its for social security benefits. or you could ask one of his children to request it since they are definitely eligible to get copies

Update: I called SSA this morning and got disconnected twice after waiting over 45 minutes each time. On my third try I finally got through to someone who told me they CAN verify his death internally, but that I need to make an in-person appointment to discuss survivor benefits. The earliest appointment is in FEBRUARY 2025 - almost 3 months away! Unbelievable. She did confirm that neither my pension nor deferred comp count toward the earnings limit, so that's at least one question answered. Still trying to figure out if I should take my own benefit at 62 or wait and take ex-spouse survivor benefit...

Daniel, I'm sorry you're dealing with this frustrating situation! The good news is that multiple people have confirmed your pension and deferred comp won't count against the earnings limit - that's a huge relief for your planning. Regarding the death certificate issue, I had a similar problem when my father passed. What worked for me was requesting to speak specifically with a "Claims Development Representative" rather than a general customer service rep. These specialists have access to more detailed records and can often verify death information without requiring additional documentation, especially since your ex was already receiving benefits when he passed. For the survivor benefits decision, you might want to consider this strategy: if you're eligible for survivor benefits (which sounds likely given your 19-year marriage), you could potentially take reduced survivor benefits starting at age 60 while letting your own retirement benefit grow with delayed retirement credits until age 70. This could maximize your lifetime benefits depending on which amount is higher. I'd definitely recommend getting estimates for both scenarios before making your decision. The February appointment wait is outrageous - definitely try some of the workarounds others have suggested!

I'm so sorry you're going through this bureaucratic nightmare! The death certificate situation is particularly frustrating when SSA clearly already has this information in their system. A few suggestions that might help: 1. **For the death certificate issue**: Since your children received benefits on his record after his death, SSA definitely has his death recorded. When you call back, specifically ask to speak with a "Technical Expert" or "Claims Specialist" and mention that his death was already established for your children's survivor benefits. Reference those benefit payments as proof they have the death information. 2. **Congressional assistance**: This is exactly the type of federal agency issue that Congressional offices are equipped to handle. Contact your Representative's or Senator's constituent services - they can often cut through red tape that would take you months to resolve. 3. **Survivor benefit timing**: You have some valuable options here. Since you can take survivor benefits as early as 60 (though reduced), you might be able to claim those while letting your own retirement benefit grow until 70 with delayed retirement credits. The optimal strategy depends on the relative amounts. 4. **Getting through to SSA**: Try calling right when they open (8 AM local time) or during lunch hours when call volume might be lower. The Claimyr service others mentioned could also save you hours of frustration. The earnings limit clarification is great news for your planning - having that pension and deferred comp income without it affecting your Social Security makes retirement much more feasible!

Daniel, I've been through a very similar situation and want to share what finally worked for me. The death certificate roadblock is incredibly common - SSA has the information but still demands documentation they already possess. Here's what broke through for me: When you call SSA, immediately ask for a "Claims Authorization Representative" and explain that you need to discuss "potential auxiliary benefits on a deceased number holder's record." Use those exact terms - it signals to the system that this is a complex benefits determination, not a simple inquiry. Also mention upfront that "benefits were previously awarded to minor children on this record following the number holder's death in 2012." This creates a paper trail they can follow in their system without requiring external documentation. For the survivor vs. retirement benefit decision, you have a huge advantage being divorced after 19 years. You can potentially use a "claim and switch" strategy: take reduced survivor benefits starting at 60, then switch to your own maximum retirement benefit at 70 if it's higher. This is one of the few scenarios where you can actually optimize both benefits. One often-overlooked point: if you do qualify for survivor benefits, they're calculated differently than spousal benefits and aren't subject to the Government Pension Offset if that applies to your situation. The February appointment is unacceptable given that this should be a straightforward records review. Keep pushing for an earlier date or phone consultation - they often have cancellations that open up sooner slots.