Millions of surviving spouses collect Social Security benefits, but many make costly errors by claiming the wrong amount at the wrong time. When a spouse dies, survivors can receive a monthly benefit based on the deceased's earnings, separate from their own retirement benefit. While you can only collect one, choosing the higher amount is crucial.
Survivor benefits can be up to 100% of the deceased spouse's benefit if claimed at full retirement age (between 66 and 67). Claiming earlier, as early as age 60, reduces the amount, starting around 71.5%. Qualification generally requires being married for at least nine months, not remarrying before age 60, or meeting specific criteria for divorced spouses or those caring for minor children.
A critical, often unknown, strategy allows survivors to claim one benefit now and switch to a potentially larger one later, a flexibility largely eliminated for others in 2015. This allows survivors to maximize their lifetime income by letting one benefit grow while collecting another.
Survivors can also begin collecting reduced benefits at age 60, two years earlier than most individuals. This opens options like collecting survivor benefits while allowing personal retirement benefits to grow significantly until age 70.
The calculation for full retirement age for survivor benefits differs from personal retirement benefits, falling between 66 and 67. Importantly, survivor benefits do not increase past this age, unlike personal retirement benefits which continue to grow until age 70.
Recent legislative changes, like the Social Security Fairness Act, have restored benefits for former government workers whose pensions previously reduced or eliminated their survivor benefits. Those previously denied due to these rules should contact the Social Security Administration.
To avoid costly mistakes, it is essential to contact the Social Security Administration directly to compare personal retirement benefits with survivor benefits and understand the switching strategy. Higher earners are advised to delay benefits as long as possible to secure the largest possible survivor benefit for their spouse.