How survivor benefits work for spouses
Let's say you're a 63-year-old from a small town who spent life doing odd jobs for your neighbors. The pay wasn't much, and neither were your contributions to Social Security. On the other hand, your spouse was a professional with a good income — enough to support you both — who was looking forward to retiring in a few years and cashing in on their hard-earned benefits. Until the unthinkable happened.
Since your spouse contributed a lot more to Social Security, the monthly retirement benefit they would've been eligible for may be a lot higher than yours. In this case, it would pay to look at claiming survivor benefits.
A spouse may be eligible for survivor benefits if they're at least age 60 (or, if they have a disability, at least 50), were married for at least nine months before their spouse died and didn't remarry before age 60 — or 50 in the case of a disability. (Eligibility may change if a child is involved.)
You're over 60, which means — assuming you tick the other boxes as well — you can start claiming benefits right away. But it may be beneficial to wait.
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Discover the secretWaiting to claim could be advantageous
At 63, you can claim Social Security survivor benefits, but they'll be reduced. A better move may be to wait until your full retirement age as a survivor — age 66 for people born between 1945 and 1956, gradually increasing to age 67 for people born in 1962 or later. This is different from the full retirement age for retirement benefits, which is 67 for people born in 1960 or later.
At full retirement age, you'll be eligible for 100% of the monthly Social Security benefit your deceased spouse was entitled to for the rest of your life. If you apply for the survivor benefit as early as possible, you'll get only 71.5% of what they were entitled to. This figure gradually increases from age 60 to your full retirement age.
You should also know that if you work while receiving survivor benefits and are below full retirement age, those benefits may be reduced depending on your earnings. But if you exceed the limit, the amount that your benefits are reduced isn't lost, according to the Social Security Administration. "Your benefit will increase at your full retirement age to account for benefits withheld due to earlier earnings."
Also, since you're not 65 yet, it means you’re not eligible for Medicare. You may want to keep your income low enough to qualify for health coverage through Medicaid (income limits vary by state). Social Security typically counts as income when determining Medicaid eligibility. Note, however, it's possible even after reaching age 65 to be dually eligible for both Medicare and Medicaid.
If you want to get the most out of your money in your retirement, you may want to consult with a financial adviser. They can help you determine the best course of action for when you should claim benefits and how to factor in any other retirement savings you might have so you can make the best of your golden years.
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