Q&A: Social Security survivor benefits

Dear Liz: I am 63 and retired but have not started to collect my Social Security. My husband will be 67 in March. He started his Social Security at 62. Our plan is to wait until I am 70 to start my benefit, which would make my monthly amount significantly larger than his. If I predecease my husband, would he be able to collect my benefit instead of his own? If I started benefits now, our checks would be relatively close in size, although mine would be a bit higher than his current amount.

Answer: If you had started benefits already, your husband’s survivor benefit would equal what you were receiving when you died. Since you didn’t start early, though, your husband will get more.

If you should die before your full retirement age of 66 without starting retirement benefits, he would receive a survivor benefit equal to what you would have received at 66.

If you continue to delay benefits past age 66, your retirement — and thus his survivor benefit — would accrue the “delayed retirement credits” that boost your Social Security check by 8% annually between age 66 and age 70, when your benefit maxes out. In other words, if you die between 66 and 70 without starting benefits, he would get the delayed retirement credits and larger check you’d earned even if your checks hadn’t started.

As you can see, delaying the start of benefits is a great way to maximize what a survivor receives. It’s particularly important for the higher earner in a couple to put off filing for retirement benefits for as long as possible.

Q&A: Understanding Social Security survivor benefits

Dear Liz: I need a clarification because I’m getting conflicting answers from Social Security.

I know if you start Social Security benefits early, you get them at a reduced rate. When your spouse dies, is your survivor benefit reduced as well? My friend’s mother never worked, but started collecting spousal benefits at 62. Does she get reduced or full benefit when her husband dies?

Answer: Her survivor’s benefit is not reduced because she started spousal benefits early. It may be reduced, however, if her husband started retirement benefits early or if she starts survivor’s benefits before her own full retirement age.

Survivor’s checks are based on what the husband either was receiving or had earned. If the husband starts retirement benefits before his own full retirement age (currently 66), his checks are reduced, which also reduces what his widow could receive as a survivor.

If he delays retirement past 66, he earns 8% annual “delayed retirement credits” — an increase both would get.

If he dies before full retirement age without starting benefits, the survivor benefit would be based on what he would have received at full retirement age. If he dies after full retirement age without starting benefits, the survivor check is based on the larger amount he had earned (in other words, his benefit at full retirement age, plus any delayed retirement credits).

How much of the husband’s benefit his widow would get depends on when she starts claiming her survivor’s benefit.

If she starts at the earliest possible age of 60 (or 50 if she’s disabled, or any age if there are children under 16), her survivor’s benefit will be reduced to reflect the early start.

If she waits until her full retirement age, by contrast, the survivor’s benefit would be equal to what her husband was receiving or had earned. Waiting to start survivor benefits until after her full retirement age doesn’t increase her check, however.