When most people think of Social Security, they think of the retirement benefits that seniors receive after putting in a few decades in the workforce. But the program also provides checks to other groups, including those who are disabled and family members of deceased workers.
The latter is known as survivors benefits or widows benefits. While any amount is better than nothing, it's only natural to want the largest checks possible. But you might wind up with less than expected if your spouse claimed Social Security early. Below, we'll take a look at why and what you can do about it.
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How the government calculates widows benefits
The government determines what kind of a widows benefit you're eligible for by looking at the following factors:
- The deceased worker's monthly benefit at the time of their death
- Your age at the time of claiming
- Whether you're caring for the deceased worker's minor child
The deceased worker's benefit depends on their income throughout their working years and their age when they first apply. To get their primary insurance amount (PIA) -- the amount they're entitled to based on their work history -- they must wait until their full retirement age (FRA) to sign up.
Claiming under their FRA could shrink their monthly checks by up to 30%. And this, in turn, shrinks the maximum widows benefit available to you. For example, if the deceased worker's PIA was $2,000 per month and the Social Security Administration reduced their checks by 30% due to early claiming, they'd only get $1,400 per month. And that would be the largest widows benefit you'd be eligible for.
It's possible to wind up with even less, though. To claim the full amount you're eligible for -- $1,400 in our example -- you would have to wait until your own FRA to sign up. If you were to claim early, the Social Security Administration would shrink this amount further. Applying for widows benefits right away at 60 would cost you an additional 28.5%, reducing your monthly checks to $1,001 per month in our example.
How to stretch your widows benefits as far as possible
If a couple knows that one partner has a terminal illness, the sick person might choose not to claim Social Security before their death to maximize the widows benefit their spouse will be eligible for. But sometimes, this isn't financially feasible, and people can die unexpectedly.
If your spouse had already claimed Social Security early, there may be nothing you can do to reverse the benefit reduction the Social Security Administration automatically applies to your widows benefit. But there are a few things you can try to help these checks go as far as possible.
Claim benefits for all eligible members of your household
Widow(er)s typically can't claim survivors benefits until they're at least 60, or 50 if they're disabled. But there's an exception for those who are caring for a child of the deceased worker who's younger than 16.
If you're in this situation, you may wish to consider claiming earlier. In this case, your widows' benefit would be 75% of the deceased worker's benefit. But the child will also be eligible for 75% of the worker's monthly benefit. Claiming benefits for all eligible family members could give you more money, at least in the short term, compared to waiting until you turn 60 to apply.
Think carefully about when to apply for survivors benefits
Those without children should think carefully about the effect claiming early could have on their widows benefits before doing so. If you are still working and don't need the extra income, waiting until your FRA is probably wise, especially if you believe you'll live for many years yet.
If you cannot afford to wait until your FRA to claim, consider delaying benefits by a few months or years so the government doesn't reduce your checks as much. You can also sign up right away if you want to, as long as you understand that your checks won't be as large.
Be strategic about claiming your own Social Security benefit
Widow(er)s who are eligible for Social Security in their own right cannot claim their own benefit and a widows benefit at the same time. If you're eligible for both, the government will give you the larger of the two.
But you may be able to claim a reduced widows benefit beginning at 60 (or 50 if you're disabled) and then delay your own Social Security benefit until you reach your FRA or even 70. This is the age at which you qualify for your largest possible Social Security checks. Once you apply for your own benefit, you won't be eligible for the widows benefit anymore, but you could wind up with new checks that are even larger.
Don't hesitate to reach out to the Social Security Administration if you have any questions about your widows benefits or additional survivors benefits that others in your household might be eligible for. Once you begin claiming these benefits, it's tough to undo your decision, so it's best to wait until you have a solid plan in place before you apply.
