Laid off at 64 - navigating unemployment, Social Security, and severance timing questions

First, take a deep breath - this is manageable! I went through something similar at 63 last year. You're on the right track with applying for unemployment first. The severance timing question is important. Your severance doesn't count as "earnings" for Social Security earnings test purposes - only wages from actual work count. So you can receive your severance and it won't affect your SS benefits. However, unemployment benefits might be reduced if you're receiving Social Security in some states, so check your state's rules. If you're 64 and 5 months now, you're still under Full Retirement Age (FRA). For 2025, you can earn up to $21,240 without SS benefit reduction if you're under FRA. Anything over that, and they deduct $1 for every $2 you earn. This includes only work income, not unemployment or severance. You don't need to wait until 2026 to claim - you can file now, but just be mindful of the earnings test if you take part-time work.

OMG i'm going thru the EXACT same thing!!! got laid off last month at 63 and trying to figure out if I should take SS now or wait????? so confusing!!! did you talk to someone at SS yet?? I tried calling and was on hold FOREVER and then got disconnected. typical. 😡

I've helped several friends through this exact situation. Here's what you need to know about SS filing strategy in your case: 1. The earnings test for 2025 is $21,240 if you're under FRA. This ONLY applies to wages from work, not severance or unemployment. 2. Since you're 64.5, your FRA is likely 66 and 8-10 months. If you claim now, you'll face a permanent reduction of about 12-13% from your full retirement amount. 3. Unemployment and Social Security can be collected simultaneously in most states, but some reduce unemployment if you're getting SS. 4. You don't need to wait for severance to clear before applying. SSA asks about expected future earnings from WORK, not one-time payments like severance. 5. IMPORTANT: There's a Social Security rule called "deemed filing" - once you file for any benefit, you're deemed to have filed for all benefits you're eligible for. So if your spousal benefit might be higher than your own, think carefully about timing. My suggestion: Apply for unemployment immediately. Then seriously consider whether claiming SS at 64.5 vs waiting until your FRA makes financial sense in your situation.

when i got laid off i just did unemployment right away and waited on ss. got a part time job at target and it wasn't so bad. but i was only 62 so different situation maybe. good luck!!

Sorry to hear about your job loss. The unemployment system is awful to navigate, and SSA is even worse! After spending WEEKS trying to get someone on the phone at Social Security (either disconnected or 3+ hour wait times), I found a service called Claimyr that got me through to a human at SSA in under 20 minutes. They basically wait on hold for you then call you when they have a rep on the line. Saved me so much frustration! Their website is claimyr.com and they have a video showing how it works: https://youtu.be/Z-BRbJw3puU As for your actual question - I was in a similar situation last year. I took unemployment first, then filed for SS about 3 months later. My severance didn't affect my benefits at all. The key thing to watch is if you get part-time work later, stay under the earnings limit ($21,240 for 2025).

THE SYSTEM IS RIGGED AGAINST US!!! I got laid off at 63 and they told me I earned "too much" in my last quarter to get my full SS even though I WASNT WORKING ANYMORE!!!! Had to wait SIX MONTHS before getting my full payment!!! The SSA doesn't care about real people and their ACTUAL circumstances. They just apply their stupid rules without any COMMON SENSE!!! My advice: document EVERYTHING. Get NAMES of everyone you talk to at SSA. Ask for SUPERVISORS when they tell you something that makes no sense. The frontline people often don't know the actual rules!!!

Regarding your part-time work question - if you do decide to work part-time after unemployment runs out, you'll need to stay under the annual earnings limit of $21,240 (for 2025) to avoid benefit reductions if you're claiming SS before your Full Retirement Age. However, there's a special rule for the first year you retire. In that first year, you can use a monthly test instead of the annual test. This means that regardless of your total annual earnings, you can receive benefits for any month you earn less than $1,770 AND don't perform substantial services in self-employment. This could be very useful in your situation since you've worked part of 2025 already. Make sure to let SSA know you've retired mid-year so they can apply this monthly test.

my sister just went thru this. she took unemployment first then filed SS after getting her last check from work. they told her severance didn't matter for SS but the unemployment office asked about her severance i think. they all have different rules its so confusing the thing about part time work, just be careful not to make too much or they take away some SS. my sister works at a garden center 3 days a week and its under the limit so shes fine

Here's an important timing consideration: Social Security benefits are paid the month after they are due. Also, they are payable for an entire month, but you must be eligible for the entire month. Since you turn 65 in about 7 months, if you file now, you'll get the benefit amount for age 64 and 5 months. That's approximately a 13.9% reduction from your full retirement age amount. One strategy to consider: Start your unemployment benefits now, then apply for Social Security a month before your unemployment runs out (assuming you haven't found part-time work yet). This maximizes your immediate income while allowing your SS benefit amount to grow slightly. Remember that each month you delay filing between 62 and your FRA increases your benefit amount by about 0.5% to 0.7% depending on your exact birth year. Small increases, but they last for life.

just wondering did you check if you can get any disability instead of regular ss? my neighbor got that when he got laid off at 61 and had some health problems. paid more than regular ss i think

One more thing to consider: since your husband is still working and 2 years younger, you might want to look at spousal benefit strategies. If you claim your own retirement benefit now, you'll be locked into that reduced amount (plus COLAs) for life. If you wait until your husband files (which would be at least 2 years from now), you might be eligible for a spousal benefit if 50% of his FRA benefit is more than your own benefit. However, because of the "deemed filing" rules that came into effect in 2016, if you file for your own benefit now, you'll be automatically deemed to have filed for spousal benefits too, even though your husband hasn't claimed yet. This means if you later become eligible for a higher spousal benefit, you'll only get the difference added to your already-reduced retirement benefit. This gets complicated quickly and really depends on your specific situation and benefit amounts, so it might be worth consulting with a financial advisor who specializes in Social Security claiming strategies.

I'm so sorry to hear about your job loss - being laid off at any age is stressful, but especially when you're close to retirement. I went through something similar at 63 and wanted to share what worked for me. You're absolutely right to apply for unemployment first - that's immediate income you're entitled to. The good news is that unemployment and Social Security can typically be collected simultaneously, though some states have specific rules about this. Regarding your severance timing question: you don't need to wait for the severance to hit your account before filing for SS. Severance is considered a one-time payment and doesn't count toward the earnings test that could reduce your benefits. Only ongoing wages from actual work count toward that $21,240 limit for 2025. However, before you file for Social Security, I'd strongly recommend getting an estimate of your benefits at different claiming ages. You can do this on the SSA website with your my Social Security account. At 64 and 5 months, you're looking at about a 13-14% permanent reduction from your full retirement age amount. One strategy that might work: Use unemployment benefits to bridge the gap for a few months while your SS benefit amount grows slightly each month you delay. Then file for SS closer to when unemployment runs out, giving you a bit higher monthly benefit for life. Also consider spousal benefits if your husband has higher earnings - the timing of when you claim can affect your future options there too.

I'm facing a very similar situation at 63, so I really feel for what you're going through! The complexity of coordinating all these benefits is overwhelming when you're already stressed about losing your job. One thing I learned that might help: when you apply for Social Security, they'll ask about your expected earnings for the entire year, not just going forward. Since you worked in January and part of February 2025, make sure to include those earnings in your estimate. But here's the key - they have a special "grace year" rule for your first year of retirement that can work in your favor. In your first year claiming benefits, they can apply a monthly earnings test instead of the annual test. This means for any month where you earn less than $1,770 and don't perform substantial work, you can receive your full SS benefit - regardless of what you earned earlier in the year. This could be perfect for your situation since you've already had earnings in early 2025. Also, don't stress too much about the exact timing of when your severance arrives versus when you file for SS. As others mentioned, severance doesn't count toward the earnings test, so there's no need to coordinate those two things. The unemployment office might ask about your severance though - each state has different rules about how severance affects unemployment benefits, so definitely check your state's specific guidelines. Hang in there - you'll get through this transition!

I'm so sorry you're going through this - job loss at our age is incredibly stressful, especially when you're trying to navigate all these interconnected systems. I was in a similar situation when I was laid off at 63 last year. From my experience and research, here's what I'd recommend for your specific situation: 1. **Apply for unemployment immediately** - You're entitled to this and it provides immediate income while you figure out the SS timing. 2. **The severance timing doesn't matter for SS purposes** - Severance is a one-time payment that doesn't count toward the earnings test, so you don't need to wait for it to clear before filing for Social Security. 3. **Consider the "bridge strategy"** - Use unemployment benefits (26 weeks) to delay your SS filing by a few months. Each month you wait increases your benefit amount slightly, and since it's permanent, even a small increase adds up over your lifetime. 4. **Be aware of spousal benefit implications** - Since your husband is still working and typically earned more, make sure you understand how claiming now might affect your future spousal benefit options due to deemed filing rules. 5. **Look into your state's rules** - Some states reduce unemployment if you're collecting SS, and states have different rules about how severance affects unemployment eligibility. The hardest part is that there's no single "right" answer - it depends on your financial needs, health, and long-term plans. But you have good options, and taking unemployment first gives you breathing room to make the SS decision thoughtfully. You've got this! The initial overwhelm is normal, but once you start taking action, it gets much more manageable.

I'm really sorry to hear about your situation - being laid off at 64 is such a difficult position to be in, especially when you're trying to coordinate all these different benefit systems. I went through something very similar when I was laid off at 65 last year, and I wanted to share what I learned about the coordination between unemployment, severance, and Social Security. First, you're absolutely right to apply for unemployment immediately. That's income you're entitled to and it gives you breathing room to make the other decisions without feeling rushed. Regarding your severance timing question - you don't need to worry about when it hits your account relative to filing for SS. Severance is considered a one-time payment and doesn't count toward the Social Security earnings test. Only ongoing wages from actual work count toward that $21,240 limit for 2025. One thing that really helped me was using the SSA's benefit calculator on their website to see exactly how much my monthly benefit would increase for each month I delayed filing. At 64 and 5 months, you're looking at roughly a 13% permanent reduction from your full retirement age amount. Each month you wait increases that benefit slightly - and it's permanent for life. The unemployment benefits can serve as a bridge while your SS benefit grows. Since unemployment in most states lasts 26 weeks, that gives you about 6 months to let your benefit amount increase before you need to make the filing decision. Just make sure to check your state's specific rules about collecting unemployment and SS simultaneously - most allow it, but a few have restrictions. One more consideration: since your husband is still working and younger, definitely look into the spousal benefit implications before you file. The deemed filing rules can affect your future options there. You're dealing with a lot right now, but taking it one step at a time makes it much more manageable. Start with unemployment, then you'll have space to make the SS decision thoughtfully.