Can You Collect Unemployment and Social Security?

September 8th, 2010  |  Published in Retirement, Social Security  |  6 Comments

With the unemployment rate being so high many people are wondering whether they can collect Social Security and unemployment benefits. The simple answer is yes. You can collect both unemployment and Social Security retirement benefits. However, in five states – Illinois, Louisiana, South Dakota, Utah, and Virginia – your unemployment benefits are reduced when you are receiving Social Security retirement benefits. Most of these have a 50 percent offset which means for every dollar in Social Security retirement benefits you receive your unemployment benefit is reduced by 50 cents. This could result in one’s unemployment benefits being reduced to zero.

Since many states are paying out a lot in unemployment benefits and are looking for ways to reduce their expenses it is possible that more states will pass offset laws. You should check with your state to see if it has an offset law.