How much of your retirement income can creditors take?
Retirement income can be vulnerable to creditors, but protections vary based on the type of income. Social Security benefits are generally protected from garnishment by private creditors, although federal debts can lead to some deductions. Pension income may have protections while in the plan, but once distributed, it can be subject to garnishment depending on state laws.
- ▪Retirement income is not fully protected from creditors, especially for those with high debt.
- ▪Social Security benefits are largely protected from garnishment by private creditors, but federal debts can lead to deductions.
- ▪Pension income protections depend on the type of plan and state laws, with potential exposure after distribution.
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MoneyWatch: Managing Your Money How much of your retirement income can creditors take? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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