What would you like to do?

If you collect unemployment does it reduce your Social Security benefits for the future?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

No, not technically. Social Security is technically considered 'insurance', as are unemployment benefits.
Unemployment benefits are regulated and provided by your state of residence, while Social Security benefits are under the control of the federal government.
The monies you receive for unemployment, however, are generally not taxed, so you are not paying INTO the Social Security system, as you are when you have paid employment. (I have noticed recently, however, that some states give UE recipients the option of having taxes withheld or not. If one does NOT have the taxes withheld will then have to pay them at the end of the year, per their tax return.) Another answer:
NOT receiving any unemployment benefits would mean that during the time that they calculate your SS entitlements your average income would be reduced by the zero income in the period you were not paying your SS taxes because of your unemployment. Therefore, any amount you receive from unemployment is a plus even if it only counted as immediate income and not credited to your SS account. So your averages are not reduced by receiving unemployment compensation.
CLARIFICATION:
Just to clarify. Since Social Security calculates your benefit based on the 35 best years of your working years, if you have a long period of unemployment this could reduce your average wages, and thus potentially reduce your benefits. If you exhausted unemployment benefits and had any "zero income years" that could reduce your average wages even more, and thus the basis for you Soc Sec benefits. However if you had 35 working years total by the time you retire you would be OK since the calculation is based on your "35 best years"
14 people found this useful
Thanks for the feedback!
Follow

When I'm not modeling or pursuing my acting career, you can find me _________. How would you fill in the blank?

View Full Interview

Can you collect unemployment benefits and Social Security benefits at the same time in California?

Yes, if you qualify under each program. Both Social Security and the State of California allow workers to collect unemployment compensation and Social Security benefits at the

Can you collect unemployment and Social Security benefits at the same time?

Yes, you can receive Social Security Disability (SSDI), Supplemental Security Income (SSI), or Social Security retirement benefits and unemployment compensation if you can mee
Can you collect unemployment benefits and Social Security benefits at the same time in Michigan?

Can you collect unemployment benefits and Social Security benefits at the same time in Michigan?

Yes, if you qualify under each program. Both Social Security and the State of Michigan allow workers to collect unemployment compensation and Social Security benefits at the s

Can you collect unemployment benefits while receiving Social Security benefits after age 65?

Yes. It has been found, however, that for some reason some states (Virginia, for example ) reduce the amount of your unemployment compensation by the amount of your SS, which

Can you collect both unemployment benefits and Social Security in Louisiana?

I believe this answer is slightly incorrect -- "Yes, you can. Under "Non monetary Issues" > "Disqualifications" item (f) on page 5 of the Related Link below, Social Security b