What Happens to Your Social Security Benefit if Your Spouse Dies?

Social Security provides guaranteed income for life to retired workers and their spouses. In most cases, that income becomes more important over time as other sources of savings, such as 401(k) plans and IRAs, are gradually depleted.

But what happens when one spouse dies? In certain instances, survivors benefits allow the surviving spouse to inherit the deceased partner's payout. Unfortunately, many Americans misunderstand the program, which could cause them to miss out on financial support at a vulnerable time.

Read on to learn more about Social Security's survivors benefits.

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The difference between Social Security's retirement benefits and survivors benefits

Broadly speaking, Social Security benefits fall into three categories: (1) retirement benefits for retired workers and their spouses, (2) survivors benefits for widows and widowers, and (3) disability benefits for disabled workers and their spouses. The differences between retirement benefits and survivors benefits are discussed in detail below:

Retirement benefits are paid to retired workers and spouses

Retired-worker benefits are based on lifetime earnings and claim age. A worker's primary insurance amount (PIA), the payout awarded to individuals who claim Social Security at full retirement age (FRA), is calculated as a percentage of inflation-adjusted earnings from the 35 highest-paid years of work. The actual payout is then adjusted based on claim age, downward if they claim earlier and upward if they claim later.

Spousal benefits allow the spouses of retired workers to claim Social Security even if they have no personal work history. Payments are calculated as a percentage of the retired worker's PIA. The precise benefit awarded depends on the age at which the spouse claims Social Security, but it can't exceed 50% of the retired partner's PIA. Spouses who claim earlier than FRA receive a reduced payout, meaning less than 50% of the retired partner's PIA.

Importantly, workers and spouses are eligible for retirement benefits at age 62, but claiming strategies differ because the payments are calculated in different ways and capped at different ages. For instance, retired workers maximize their benefit by delaying Social Security until age 70, but spouses maximize their benefit by claiming Social Security at full retirement age (i.e., 67 for anyone born in 1960 or later).

Spousal benefits are paid to widows and widowers

Survivors benefits let surviving spouses inherit their deceased partner's Social Security, so long as the payout exceeds their own and certain conditions are met: The survivor must be at least 60 years old, they must have been married for at least nine months, and they must not have remarried before age 60.

The survivors benefit will equal the retired-worker benefit paid to the deceased spouse if the widow(er) claims Social Security at FRA. But widow(er)s who collect survivors benefits before FRA will receive a smaller payout, meaning less than 100% of the benefit paid to the deceased spouse. The precise reduction depends on how many months early payments begin, but it could be as much as 29%.

What happens to your Social Security benefit when your spouse dies

In most cases, married couples receive two Social Security checks. Sometimes that means two retired-worker benefits; other times it means one retired-worker benefit and one spousal benefit. Either way, one revenue stream disappears when one spouse dies.

Survivors benefits compensate for the lost income by letting widow(er)s keep the larger of the two Social Security checks. If the widow(er) already receives the larger check, nothing happens to their benefit when their spouse dies. But if the widow(er) receives the smaller check, they can replace their own retirement benefit with that of their deceased partner by applying for survivors benefits.

Here's an example: James is a retired worker who collects $2,500 in monthly benefits. His wife, Sarah, also a retired worker, collects $2,000 in monthly benefits. If Sarah dies, James need not apply for survivors benefits because he already receives the larger payout. But if James dies, Sarah should apply for survivors benefits. Her monthly benefit would increase to $2,500.

To apply, Sarah can either call the Social Security Administration (1-800-772-1213) or visit her local Social Security office.

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