Social Security - Part 4 of 5 - How to Maximize Survivor Benefits.

alanmendlowitz
Jan 30
2 min read

Losing a spouse is one of life’s most devastating challenges. While no amount of money can fill the emotional void, Social Security survivor benefits can provide vital financial support. Knowing how to claim these benefits strategically could make a significant difference in your financial security.

Let’s walk through the essentials of survivor benefits—and how to maximize them.

Who Can Receive Survivor Benefits?

Survivor benefits aren’t just for widows and widowers. You may be eligible if:

You’re at least 60 years old (50 if disabled).
You’re caring for a child under 16 or a disabled child of the deceased.
You’re a divorced spouse who was married to the deceased for at least 10 years.

How Are Survivor Benefits Calculated?

The amount you receive depends on:

Your Spouse’s Benefit Amount: If your spouse delayed their claim beyond FRA, their higher benefit amount will apply to your survivor benefit.
Your Age at Claim: If you claim before your survivor FRA, your benefit will be reduced.

Example:If your spouse’s FRA benefit was $2,000 but they delayed claiming until age 70, their benefit grew to $2,480. As a surviving spouse, you could receive the full $2,480 if you wait until your FRA to claim.

Strategies to Maximize Survivor Benefits

Wait Until Survivor FRA

Claiming survivor benefits before your survivor FRA reduces your monthly payment. Waiting ensures you receive 100% of the deceased’s benefit.
Combine Benefits Wisely

If you’re eligible for your own retirement benefit, you can claim one benefit early and switch to the other later.

Example: If your own benefit is $1,200 but your survivor benefit is $2,500, you might claim your own benefit at age 62 and switch to the survivor benefit at FRA for the higher amount.

Work Strategically

If you work while claiming survivor benefits before FRA, your earnings may reduce your benefit. Once you reach FRA, your benefits won’t be affected by your income.
Consider Future Survivors

If you remarry after age 60 (50 if disabled), you can still claim survivor benefits from your deceased spouse’s record.

The Social Security Blackout Period

For younger widows and widowers, benefits may stop when your youngest child turns 16 and won’t resume until you reach age 60. This gap, known as the blackout period, can leave you without survivor benefits for years. Retirement planning during this time is critical.

Common Mistakes to Avoid

Claiming Too Early: Taking benefits at 60 reduces your survivor benefit to just 71.5% of the full amount.
Overlooking Earnings Limits: If you earn above the annual limit while claiming before FRA, part of your benefit will be withheld.
Not Understanding Your Options: Many survivors don’t realize they can switch between benefits or maximize payouts by waiting.

Key Takeaways

Survivor benefits can provide up to 100% of your spouse’s benefit if claimed at FRA.
Timing your claim and understanding your options can significantly impact your financial security.
Strategic planning, especially during the blackout period, is essential for younger survivors.