8 Social Security Facts Veterans and Service Members Need to Know

One key to planning for retirement is understanding all your sources of income, especially Social Security.

The program's rules can be slightly different for service members and veterans. If you have a military history, these rules can significantly affect your retirement income.

Here are eight critical things you should know about how Social Security works for those who have served.

If you served in the military before 1957, you may be entitled to credits that count toward your Social Security earnings record.

This is because military pay during that time wasn't subject to Social Security taxes. So, the Social Security Administration (SSA) credits you for military service during those years when calculating your benefits.

Even if your service was short, it could enhance your retirement income.

If you served on active duty between 1957 and 1977, you'll receive additional earnings credits for your military service. This equates to $300 in additional earnings for each calendar quarter in which you earned active-duty basic pay.

These credits are added to your Social Security record, increasing your lifetime earnings and potentially boosting your benefits. The credits are automatic, so you don't need to request them. However, it's always wise to verify your record.

If you served on active duty from 1978 to 2001, the SSA credits you with an additional $100 in earnings for every $300 you earned in active-duty pay.

This benefit is capped at $1,200 annually and helps to increase your Social Security benefits over time.

Just like with civilians, veterans who claim Social Security before their full retirement age will receive reduced benefits.

For example, if your full retirement age is 67, claiming benefits at age 62 could reduce your monthly payment by up to 30%. Waiting until full retirement age — or even later — can significantly increase your monthly benefit.

Military retirement benefits and Social Security are separate programs, meaning you can generally qualify for both. Social Security doesn't reduce your military pension or vice versa.

This dual eligibility provides a substantial financial advantage, allowing veterans to maximize retirement income by combining both benefits.

Social Security includes provisions for disabled veterans, offering an additional safety net.

If you develop a disability related to your service or otherwise, you may qualify for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

Veterans may qualify for both SSDI and Veterans Affairs (VA) disability benefits simultaneously. These programs are independent, so receiving one benefit does not disqualify you from the other.

Each of these programs must be applied for separately, but combining both benefits can significantly enhance your financial support.

Veterans who have a 100% permanent and total (P&T) disability rating from the VA may qualify for expedited processing of their benefits application.

This streamlined service ensures faster access to benefits, which can be crucial for those facing financial challenges. When applying, notify the SSA of your P&T status to take advantage of this faster process.

Understanding how Social Security interacts with your history of military service is the key to maximizing your benefits.

Knowing how your military service impacts your Social Security benefits could help you determine if you already are set up for a robust retirement income, or whether you will need to find ways to supplement your Social Security benefits.