I'm 20 years older than my wife, 53. If she claimed Social Security benefits early, would it affect her widow's benefit?
By Alessandra Malito
‘Her own benefits are lower than what she would get under my benefits’
Dear MarketWatch,
I am 72 and delayed getting Social Security benefits until I was 70 to increase the benefit. I remarried and my new wife is 53.
If she starts receiving reduced spousal benefits before reaching her Full Retirement Age, would that affect how much she will receive as a widow under two scenarios: 1) waiting to reach FRA or 2) starting widow benefits before reaching FRA? Will her benefit as a widow be reduced twice under scenario 2?
Note: Her own benefits are lower than what she would get under my benefits.
Planning Ahead
Related: My husband, 75, is not eligible for Social Security. How is this possible? Is he entitled to my spousal benefits?
Dear Planning,
Your decision to wait until age 70 to claim benefits not only increased your personal benefit, but whatever she will get in survivor benefits. So in that regard, she’s already better than she would have otherwise been.
The rules around Social Security benefits, be it for personal benefits or that for a spouse or survivor, can be very convoluted so bear with me as I try to break it down.
Surviving spouses can get up to 100% of the benefit of the person who died, which includes delayed credits (the extra money you’re getting in your benefits now for waiting past your own FRA to age 70).
Surviving spouses can get up to 100% of the benefit of the person who died.
What your wife would get as a survivor depends on how old she is when she begins claiming. For example, if she’s at her own FRA or older, she’d get the maximum she’s eligible to receive.
If she’s 60 or older but not yet at her FRA, she would get between 71% and 99% of your benefit. (There are other scenarios too, such as if the surviving spouse is carrying for a child younger than age 16).
If she were to claim her own benefits before her own FRA while you were still alive, she would get a reduced amount – whether it is her own benefit or with a spousal benefit.
Spouses, unlike survivors, are only eligible for a maximum of 50% of what the other partner would get at his or her FRA (so your delayed credits don’t help her here).
If she’s eligible for her own benefit or spousal benefits, the Social Security Administration will determine which of the two is higher and give her that benefit (not a combination of the two).
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The agency will also automatically switch her from spousal benefits to survivor benefits, if that’s the benefit she ended up receiving.
If she were receiving Social Security when you pass – but on her own record, however – she would have to call or visit a Social Security Administration office to get started with survivor benefits.
There’s another instance where she may see reduced benefits, at least temporarily, and that is if she is working while receiving those benefits. This is because the agency has an earnings limit for people before their FRAs, regardless of the type of benefit they receive. Beneficiaries will eventually get that money back.
You can find more information about survivor benefits from the Social Security Administration here.
While you’re discussing Social Security benefits with her, take this time to consider opening online accounts with the Social Security Administration, if you haven’t already, where you can review personal information and earnings history, as well as prevent any scammers from creating an account on your behalf.
Now is also a great time to get more planning done for her future. You seem to have done smart financial planning given that you have already delayed Social Security benefits until you turned 70.
Now would be a good time to start making plans for her (and your) later years.
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Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com
-Alessandra Malito
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09-17-24 0957ET
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