How Severance Affects Your Social Security Benefits

Episode 40 of The Layoff Podcast digs into a blind spot most people miss during a layoff: how a severance package can change the timing and amount of your Social Security benefits. Hosts Lucas and Luna walk through the Social Security earnings test, the difference between earned income and severance pay, and a real-world example of a 63-year-old marketing director whose lump-sum payout accidentally triggered an early benefit reduction. They explain why a severance structured as salary continuation keeps you under the annual earnings limit, while a lump sum can eat into your benefit if you claim early. Lucas shares one simple planning move: deferring your claim until the severance year ends. This episode is essential for anyone over 60 facing a layoff, or for younger workers who want to understand how future severance decisions interact with retirement planning. #Severance #SocialSecurity #RetirementPlanning #EarningsTest #Layoff #Careers #FexingoBusiness #BusinessPodcast #JobLoss #SeverancePackage #SocialSecurityBenefits #EarlyRetirement #SalaryContinuation #LumpSum #FinancialPlanning #LucasAndLuna #TheLayoffPodcast #Fexingo Keep every episode free: buymeacoffee.com/fexingo