My employer pays me a % of my wages when I retire at age 55. Are these wages subject to social security taxes?

So, my employer's retirement program pays me $10,000 per year if I retire at age 55. I am trying to figure out how much of that I will actually receive and how much go to taxes. I would like to know if these wages are subject to SS taxes between ages 55 and when I sign up for SS at age 65. and also after age 65.

Public Comments

1. Pensions are not subject to ss tax.
2. Pensions are not subject to Social Security Taxes (FICA + MediCare), but they are subject to both federal and state income taxes. You will have to pay income taxes on those pension benefits when they are received if they are greater than the standard deduction ($4,850 for 2006) plus the amount of personal exemptions that you get ($3,100 per personal exemption). Taxes on your social security are a little more complicated. There is a complicated formula used to determine the amount of taxable social security benefits that can be found on the IRS website.