I recently spoke with an NC State Employee who had worked for the State of NC for 30 years but was only 56. They had discussed retirement options with the State Retirement System and were under the impression they could start Social Security early. However, what they likely heard was about the state’s plan for those retiring before Social Security eligibility, where the state provides additional benefits early and reduces them when Social Security kicks in at age 62.
Having worked with numerous State employees, I understand the complexity of navigating both State Retirement benefits and Social Security. Each individual’s situation is unique, and caution is advised with options like the leveling plan due to potential unintended consequences.
Firstly, the leveling option assumes a certain Social Security amount, often overstating it if the person stops working. I utilize specialized software for more accurate benefit estimates. Secondly, if the retiree works after leaving the state, it can affect their Social Security benefit due to an earnings test, leading to unexpected reductions. Lastly, opting for leveling results in the lowest possible Social Security benefit, affecting not only the individual but also their surviving spouse’s benefit.
While this option may be suitable for some, especially those in poor health, for most, it’s advisable to explore alternatives. For impartial advice on State Retirement or Social Security, feel free to reach out to schedule a consultation.