Oct 12, 2023
While your plans for retirement might include buying an RV or traveling around the world, you should also give consideration — difficult though it may be — to what will happen when one spouse dies before the other.
One very important factor in this regard is the Social Security survivors benefits, essentially a transfer of the deceased’s retirement payout, which a widow or widower can receive once they’re 60 (or younger in certain circumstances).
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As with retirement benefits, the Social Security Administration (SSA) relies on a complex set of factors (such as your age, years of work, lifetime income) in determining a surviving spouse’s eligibility and benefit entitlement.
It’s always best to consult with a financial adviser on any complicated financial subject, but to help you get an initial handle on how survivor benefits can help you and your loved ones, here are five Social Security survivor “secrets” you might not be aware of.
No, you can’t collect two benefits at the same time
Don’t count on receiving a double payment if your spouse passes before you. If you’re entitled to both a retirement benefit and the survivors benefit, you’ll receive only one — the larger — of the two amounts.
If the surviving spouse is at full retirement age or older, they can receive 100% of the deceased's benefit amount. If they’re between 60 and full retirement age, they’ll get between 71.5% and 99%.
You’re not obligated to apply for both retirement benefits and survivors benefits at the same time. You can apply for either, depending on which will yield the higher monthly payout, and you can switch from one to the other later.
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In some circumstances, spouses can get survivor benefits before they turn 60
Disabled spouses 50 or older can be eligible, as can spouses of any age who are caring for a deceased person’s child younger than 16.
Incidentally, other family members may also be eligible for survivor benefits. Some examples include:
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- An unmarried child of the deceased who is under 18
- A stepchild, grandchild, step-grandchild or adopted child
- Parents of the deceased, 62 or older, who were dependent on the deceased for at least half of their support
You can still get the benefit if you’re divorced, but not if you’re remarried before 60
A survivor can be an ex-spouse if the marriage lasted at least 10 years and the ex-spouse is at least 60 years old (or 50, if disabled).
A surviving ex-spouse is eligible for the same benefit as the surviving spouse, but it won’t impact the surviving spouse’s ability to collect survivor benefits — they will both receive the amount they’re entitled to.
However, if the ex-spouse remarries before the age of 60, they become ineligible to collect survivor benefits unless the marriage ends.
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If your late spouse filed early, the widow(er)’s limit could help
If the late spouse filed early for Social Security, it means the surviving spouse will be limited to the resulting lower payout indefinitely. The widow(er)’s limit came about to offer some protection for spouses in this situation. Technically called RIB-LIM (which stands for retirement insurance benefit limit), the provision allows surviving spouses to collect up to 82.5% of the deceased’s full-retirement-age benefit.
Also important to know: if, at the time of death, the deceased hadn’t yet claimed Social Security, survivors are still eligible to receive benefits.
There isn’t a time limit
There’s no time limit on claiming your survivors benefits — and it could be in your best interest to wait. While you should report the death as soon as possible, you can decide when to claim survivor benefits based on what makes sense for your financial situation. For example, you may want to wait until you reach full retirement age so you’re entitled to 100% of your late spouse’s benefit.
If one spouse earned considerably more than the other during their working life, it may make sense to delay filing for one benefit over the other. Avoid leaving money on the table by talking to your financial adviser about the best strategy for your particular situation.
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
