Social Security Survivor Benefits: 3 Key Things to Know

Many people spend their careers paying into the Social Security system, expecting to receive benefits later. Unfortunately, not everyone lives long enough to collect checks or a substantial amount of benefits. The good news, though, is that Social Security contributions don't always disappear when someone passes away.

Social Security offers survivor benefits that are intended to provide financial stability for a person's loved ones after they've passed away. It's not an ideal situation, but here are three things to know in case you need to navigate the process.

1. Who is eligible for survivor benefits

When someone passes away and has earned enough Social Security credits, the following people are eligible for survivor benefits:

• Their surviving spouse.
• Their unmarried children who are younger than age 18, or up to 19 if they're still in school (up to 12th grade).
• Their dependent parents if they're age 62 or older.
• Their former spouse, if they're at least age 60 (50 if they have a disability) and were married for at least 10 years. They must be unmarried, unless they remarried after 60.

Stepchildren, grandchildren, step-grandchildren, or adopted children may also qualify under certain circumstances, such as being dependent on the worker for most of their support.

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2. How much you can receive in survivor benefits

Your full retirement age is when you're eligible to receive your full benefit, called your primary insurance amount (PIA). For standard benefits, the full retirement age for someone born in 1960 or later is 67. However, the survivor's full retirement age is 67 for someone born in 1962 or later.

If the surviving spouse waits until their survivor's full retirement age to claim benefits, they can receive 100% of the deceased spouse's benefit. If they claim before then (beginning at 60), they'll receive between 71.5% and 99% of the deceased's benefits.

Children can receive up to 75% of the deceased parent's PIA, not their total benefit. For example, if the deceased parent delayed benefits past their full retirement age and received $2,200 in benefits instead of their $2,000 PIA, the child would be eligible for only 75% of the $2,000 ($1,500).

Social Security also has a maximum family benefit it can pay. Right now, it's between 150% and 180% of the deceased person's benefit. So, if the deceased person's benefit was $2,000, the maximum amount that could be paid out to the family is $3,000 to $3,600. If the surviving spouse is getting $2,000 and they have two kids together, the kids would each receive $500 to $800, instead of the $1,500 they'd typically be eligible for.

3. Spousal benefits turn into survivor benefits

If you're receiving spousal benefits and your spouse passes away, your benefits will automatically turn into survivor benefits once you report your spouse's death. This works in your favor because spousal benefits only allow you to receive up to 50% of your spouse's PIA.

If your partner's PIA was $2,500 and you were receiving $1,250, you'd now get a noticeable boost and begin receiving the full $2,500 (assuming you're at your survivor's full retirement age).

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