Social Security Survivor Benefits 101: 5 Mistakes Widows and Widowers May Make After a Spouse Dies
The first year after losing a spouse can be one of the hardest years for most people. It’s filled with grief, but also paperwork, funeral decisions, household bills and adjusting to a new life.
While it’s likely not a top priority right away, eventually you will have to assess your Social Security strategy with a new lens. Survivor benefits can act as a financial lifeline, but it’s important to make sure you understand how they work. Here are five mistakes widows and widowers may make when it comes to survivor benefits, and how to avoid them.
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Mistake 1: Assuming Social Security survivor benefits are automatic
A survivor benefit can provide some extra income, but you still have to apply for benefits — they won’t come automatically. Spouses must be 60 or older to qualify for benefits, but spouses with disabilities can apply if they are 50 or older. You must have been married for at least nine months and not have remarried before turning 60. Some exceptions apply.
The surviving spouse can also be eligible for Medicare. You may end up with automatic survivor benefits if you were already claiming spousal benefits.
Mistake 2: Claiming too early without understanding the trade-off
These next mistake can influence how much you can claim in lifetime Social Security benefits. Survivor benefits for spouses and ex-spouses can start at 71.5% of the deceased spouse’s benefit. However, the total benefit rises if the survivor waits longer to claim.
You can claim up to 100% of the deceased spouse’s benefit if you wait until full retirement age, which is 66 or 67. That’s notable since it is different from personal Social Security benefits, which continue to increase if left unclaimed until 70. For survivor benefits, there is no financial reason to wait beyond full retirement age.
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Mistake 3: Thinking benefits can be stacked
While waiting pays, you can only choose between your personal benefit and the surviving spouse benefit. You cannot stack Social Security benefits together if you are the surviving spouse.
However, you can switch between personal and survivor benefits. That may be relevant if the surviving spouse continues to work and builds up their lifetime earnings a few years after claiming survivor benefits.
Mistake 4: Overlooking children’s benefits
While most people are eligible for Social Security upon turning 62, some children can qualify for survivor benefits if they are unmarried and age 17 or younger. Students who are 18-19 years old attending a K-12 school full-time (college students are ineligible), and someone age 18 or older who developed a disability before age 22 may also be eligible. Children are often eligible for 75% of the deceased parent’s benefit, but family maximum rules can reduce payments.
There’s also a $255 lump-sum death payment that is paid out to eligible surviving spouses and children.
Mistake 5: Failing to report life changes
Since the Social Security Administration doesn’t make all of these changes automatically, you have to let them know about changes to mailing addresses, direct deposits, marital status, custody, school attendance and certain work or income changes.
Survivors must report wages that are over $24,480 before taxes. Social Security offers a comprehensive list of what you must report while on survivor benefits.