Lottery Winnings' Impact on Social Security

The sudden windfall won't reduce your benefits. Here's why.

Kimberly Lankford's avatar
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Hagerstown, MD, USA - January 9, 2016: Image of Powerball lottery tickets on a United States currency background.
(Image credit: jahcottontail143)

Question: If I win the Powerball jackpot, will that affect my Social Security benefits? I'm 63, so I'm worried about the earnings test. -L.S., Boca Raton, Fla.

Answer: Lottery winnings aren't subject to the Social Security earnings test, so your windfall won't reduce your benefits. But like other high-income households, you may have to pay bigger Medicare Part B premiums at age 65. The top premium today is $428 per month.

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Kimberly Lankford
Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.