Understanding how Social Security survivor benefits work is essential for retired couples. A lack of awareness can lead to missed income and financial hardship—especially during an already difficult time.
Why Survivor Benefits Matter
Social Security is often the largest source of income for Americans aged 65 and older. Yet, many retirees don’t fully understand how benefits shift after a spouse passes away. According to the Nationwide Retirement Institute, 44% of adults didn’t know that the surviving spouse can inherit the larger Social Security benefit.
Here’s what every couple should know.
Types of Social Security Benefits
Social Security pays three main types of benefits:
1. Retired-Worker Benefits
- Based on your 35 highest-earning years.
- Claiming before full retirement age (FRA) reduces your benefit.
- Delaying past FRA increases your benefit, up to age 70.
2. Spousal Benefits
- Available to spouses aged 62+ if their partner is receiving benefits.
- Pays up to 50% of the partner’s benefit at FRA.
- Reduced if claimed early; no increase for delaying past FRA.
3. Survivor Benefits
- Available to widow(er)s aged 60+ who were married at least nine months.
- Pays up to 100% of the deceased spouse’s benefit at FRA.
- Reduced if claimed early, but delayed retirement credits are passed on.
What Happens When a Spouse Dies?
When one spouse dies, the surviving partner typically loses one Social Security check. Survivor benefits allow the surviving spouse to keep the larger of the two benefits.
Example:
- Mark receives $1,500/month; Mary receives $1,250/month.
- If Mary dies, Mark continues receiving $1,500.
- If Mark dies, Mary can apply for survivor benefits and receive $1,500 instead of $1,250.
Timing Is Critical
Survivor benefits are not retroactive. If you delay applying, you could permanently lose income. It’s important to file promptly after a spouse’s death.
Strategic Planning Tip
If one spouse has a significantly higher benefit and shorter life expectancy, it may be wise for that person to delay claiming Social Security until age 70. This ensures the surviving spouse receives the highest possible survivor benefit.
Final Thoughts
Social Security survivor benefits can be a financial lifeline—but only if you understand how they work and act quickly. Review your options, plan ahead, and make sure both partners know what to do if the unexpected happens.
