Unemployment Affects Future Social Security Pension

By Ken Marks | August 13, 2013

Unemployment seems to be improving at this point in the year, but did you know how much it affects Social Security benefits?

A lot of people don’t know this, but if you’re one of those who are taking advantage of unemployment and lazily looking for a job, then your future Social Security benefits may go down drastically.

Everett Lo, Social Security spokesman, states, “Your benefit payment is based on how much you earned during your working career. Higher lifetime earnings result in higher benefits.”

Reed Fraasa, certified financial planner, adds to Lo’s statement, “That means that for each year you work you receive credits toward a monthly pension for life. The full pension is based on the Full Retirement Age benefit and that depends on your birth year.”