economy
How much of your retirement income can creditors take?
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TL;DR
- Retirees are facing increased financial pressure due to higher costs and existing debt.
- Federal law offers strong protections for Social Security benefits against most private creditors, but exceptions exist for federal debts like taxes, student loans, and child support.
- Pension income protections vary by plan and state law; ERISA pensions are protected while within the plan, but payments may be garnishable after distribution.
- Retirement account withdrawals from IRAs and 401(k)s lose some protection once distributed, especially RMDs.
- Debt relief options for retirees include debt settlement, credit counseling, and bankruptcy.