Losing a spouse often brings financial changes at a time when you are the least prepared to handle them. The Social Security survivor benefit exists to cushion that transition. Depending on the age your spouse first claimed, you will be entitled to up to 100% of your late spouse's benefit.
It is important to keep this in mind when deciding when to make claim your initial claim for Social Security benefits. The survivor benefit is calculated from the deceased spouse's earnings record, and the amount depends on your age when you claim it. At the earliest eligibility age of 60, you'd receive about 71.5% of your late spouse's full benefit. That percentage rises with each year you wait:
- At 60, approximately 71.5%
- At 63, approximately 80%
- At 65, approximately 90%
- At full retirement age (currently 66 to 67 depending on birth year), the full 100%
Unlike your own retirement benefit, which grows by 8% per year if you delay your claim past full retirement age (delayed retirement credits), the survivor benefit doesn't increase if you delay your claim until after full retirement age (other than yearly COLAs, cost-of-living adjustments).
If your spouse passes away at or after their full retirement age (FRA) but had not yet claimed Social Security retirement or SSI benefits, the survivor benefit calculation is based on what they would have received if they had claimed benefits on the day of death — including any delayed retirement credits they had earned.
If you haven't yet claimed your own retirement benefit and it might eventually be larger than the survivor benefit based on your spouse's earnings, the Social Security Administration (SSA) allows you to collect the survivor benefit now and switch to your own retirement benefit later. The rules are constantly changing so confirm that collecting the survivor benefit does not negatively impact your own SS benefit later.
A personalized estimate from Social Security can show what you'd receive at different ages and whether your own retirement benefit might eventually be worth switching to.
In the event of the death of a spouse, Reporting the death to Social Security as soon as possible is the most important first step. In most cases, the funeral home will handle this. If they don't, calling the SSA directly at 1-800-772-1213 with the deceased's Social Security number and date of death can prevent overpayments that would otherwise need to be returned.
Once the death is reported, the next step is filing a claim for survivor benefits. This cannot be done online. You'll need to call the SSA or visit your local office with:
- The death certificate
- Your marriage certificate
- Birth certificates for any eligible children
- Social Security numbers for everyone involved
Before choosing when to claim, it helps to ask SSA for a personalized estimate. They can show how your survivor benefit compares with your own retirement benefit at different ages. That comparison can clarify your options and make it easier to decide what works best for your situation.
If you delayed your claim for eligible survivor benefit, the SSA can pay up to six months of retroactive benefits only, so filing promptly may recover income you didn't realize you were owed. Don't delay more than six months!
As with any important financial decisions, have a competent adviser to help you make these decisions that may influence your financial health for the next decades.