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survivor benefits

Q&A: Clearing up the deal with Social Security survivor benefits

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Dear Liz: I read your column regarding the wife who filed for her Social Security benefits at 62 and received $1,500, while her husband filed at 70 and was receiving $4,600. You noted that after the husband died she could receive his entire $4,600 payment, but wouldn’t the amount she receives as a survivor’s benefit be reduced due to her early filing?

Answer: That’s not true. An early start reduces retirement and spousal benefits. Survivor benefits operate by different rules.

A survivor benefit can be up to 100% of what the deceased spouse received or had earned. If the husband had filed for his own benefit earlier, for example, that would reduce the survivor benefit the wife could receive. Survivor benefits also can be reduced if the survivor starts receiving them before reaching his or her own full retirement age for such benefits.

But the wife’s early start on her own benefit doesn’t affect the survivor benefit she could get if he dies first.

Q&A: How late-in-life divorce could affect Social Security benefits

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Dear Liz: I’m a CPA and getting conflicting answers from the Social Security office about a case I’m working on. Both clients are 70 and they’re considering legal separation or divorce. She took Social Security at 62 and receives about $1,500 a month before deductions. He started Social Security at 70 and receives about $4,600. How would her Social Security change at his death or their divorce, if she doesn’t remarry?

Answer: Based on the amounts involved, both parties are receiving their own retirement benefits and those aren’t affected by divorce, said William Reichenstein, a principal at Social Security Solutions, a claiming strategy site. (If the wife were receiving spousal benefits, those would continue after divorce as long as the marriage lasted at least 10 years and she did not remarry.)

If the husband dies and they haven’t divorced, the wife would be entitled to survivor benefits equal to his full monthly benefit amount ($4,600, plus any future cost of living increases). If they divorce and the marriage lasted at least 10 years, she also would be entitled to his full amount. Remarriage wouldn’t affect her divorced survivor benefit since she’s over 60, Reichenstein said.

Q&A: Waiting to apply for retirement benefit or not

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Dear Liz: I am recently divorced but was married for 20 years. My ex is 12 years older and he waited until 70 to start collecting Social Security benefits. I am 62 and self-employed. My retirement benefit is greater than half of his (but not by much). It is my understanding that after his death I can collect his full benefit, provided I am at least 67 when I apply, even if I start taking my own benefit now at 62. Is that correct?

Answer: Yes, but he could live a long time. Starting your own benefit now means you’ll get much smaller checks for years, perhaps even decades, compared with what you’d get by waiting. Plus, any benefit you take before your full retirement age would be subject to the earnings test, with $1 withheld for every $2 you make over a certain amount ($22,320 in 2024).

You may not have much choice, but if you do, waiting to apply is usually the best option.

Q&A: When should a second earner start taking social security?

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Dear Liz: I am 64 and still working and earning decent pay. My wife is 61 and retired. I have been a high earner for most of my life while she was working and raising our family. I don’t plan to retire anytime soon. Is it a good idea for her to start taking Social Security at 62?

Answer: The vast majority of people are better off delaying their Social Security applications for as long as possible so they can maximize their lifetime benefits. It’s especially important for you to delay, since as the higher earner, your benefit will determine what the survivor gets.

Your wife, however, may be one of the few who is better off starting early. That may be the case if you continue to delay your application, and her eventual spousal benefit is more than what she would receive on her own record.

If both of those things are true, she could start her own reduced retirement benefit at 62, then switch to a spousal benefit of up to half of your check after you apply for your benefits — preferably at age 70, when they max out.

Your wife won’t be able to get a spousal benefit until you apply for your own. On the other hand, she won’t be allowed to switch benefits if you’re already receiving yours when she applies.

Clearly, there are a lot of rules involved, and the best course for you two will depend on the specifics of your situation. You’d be smart to use a Social Security claiming site, such as Maximize My Social Security or Social Security Solutions, to help you determine your best approach.

Q&A: Can an adult child inherit a deceased parent’s Social Security payments and pension?

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Dear Liz: My mom passed away recently. She had a teacher’s pension as well as Social Security benefits. Am I eligible to receive part of her benefits? If so, what steps must I take?

Answer: Social Security survivor benefits are meant to help a deceased worker’s dependents. Dependents include spouses, minor children and disabled children, as long as the disability started before the child turned 22. If you qualify, contact Social Security at (800) 772-1213.

Similarly, pension survivor benefits are typically limited to spouses and dependent children. You may be eligible for a one-time death benefit, if your mother named you as her beneficiary. Contact the pension administrator for details.

Q&A: About spousal and survivor benefits

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Dear Liz: I am 82 and receive $786 from Social Security. My wife is 75 and receives $1,400 from Social Security. I believe you said that a lower beneficiary could get the same amount as the higher beneficiary. When I contacted Social Security, I was informed that my benefit needed to be less than half of my spouse’s in order to qualify. When I asked him where in the regulations I could find that information, he abruptly hung up. Was he right?

Answer: Yes. The only time you would get the same amount as your wife is if she died, and at that point you would get only the survivor benefit (one check for $1,400, instead of the two checks totaling $2,186 you receive now as a couple).

Survivor benefits are different from spousal benefits. Spousal benefits are what you might receive while your wife is alive. Spousal benefits can be as much as 50% of the higher earner’s “primary insurance amount,” or what she was entitled to at her full retirement age. If your retirement benefit is larger than that spousal benefit amount, you would get your own benefit rather than the spousal benefit.

The Social Security site has plenty of information on how benefits work as well as calculators to help you estimate your benefits. You can start by reading its publication titled “Retirement Benefits” at https://www.ssa.gov/pubs/EN-05-10035.pdf.