<p>I've received several conflicting responses on this point: as a 63-year-old parent, being officially retired and receiving Social Security impact the FAFSA in any way? Does it result in a <em>lower</em> (i.e., better) EFC?</p>
<p>Better than a younger parent with the same assets and family size and receiving an equivalent amount of income via wages? I would think so because untaxed Social Security benefits are not reported on FAFSA and the asset protection allowance, based on the age of the oldest parent, serves to shelter more reportable assets.</p>
<p>My husband is retired and receiving his social security pension. Being retired in itself does not affect the EFC but, as sk8rmom said, any untaxed SS income is not required to be reported on FAFSA (this was new last year - before that it had to be reported as untaxed income). Any part of SS income that is taxable is included in the AGI and is therefore reportable on FAFSA so will be treated the same as any other income. Your asset protection allowance is based on the age of the older parent. Retired or otherwise does not make a difference, just age.</p>