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While your plans for retirement might include buying an RV or traveling around the world, you should also give consideration — difficult though it may be — to what will happen if one spouse dies before the other.
One very important factor in this regard is the Social Security survivors benefits, essentially a transfer of the deceased’s retirement payout, which a widow or widower can receive once they’re 60 (or younger in certain circumstances).
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As with retirement benefits, the Social Security Administration (SSA) relies on a complex set of factors (such as your age, years of work, lifetime income) in determining a surviving spouse’s eligibility and benefit entitlement.
It’s always best to consult with a financial advisor on any complicated financial subject, but to help you get an initial handle on how survivor benefits can help you and your loved ones, here are five Social Security survivor “secrets” you might not be aware of.
5. No, you can’t collect two benefits at the same time
Don’t count on receiving a double payment if your spouse passes before you. If you’re entitled to both a retirement benefit and the survivors benefit, you’ll receive only one — the larger — of the two amounts.
If the surviving spouse is at full retirement age or older, they can receive 100% of the deceased’s benefit amount. If they’re between 60 and full retirement age, they’ll get between 71.5% and 99%. To offset any social security income losses when your spouse passes, consider purchasing life insurance to help make sure your family’s future is secure after you or a loved one passes away.
With Lifeplans — an online marketplace of insurance companies — you can connect with insurers near you that suit your needs and will help you make the right choice for your spouse and your family.
All you need to do is fill in a bit of information about yourself and your coverage needs and in under 3 minutes you can browse rates and coverage amounts to determine which is best for your future.
With coverage options starting at $15 a month, you can easily compare term, final expense and whole life insurance to find the best coverage for you and your family’s needs.
4. In some circumstances, spouses can get survivor benefits before they turn 60
Disabled spouses 50 or older can be eligible, as can spouses of any age who are caring for a deceased person’s child younger than 16.
Incidentally, other family members may also be eligible for survivor benefits. Some examples include:
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An unmarried child of the deceased who is under 18
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A stepchild, grandchild, step-grandchild or adopted child
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Parents of the deceased, 62 or older, who were dependent on the deceased for at least half of their support
If you’re unsure of what spousal benefits you qualify for and want to be prepared, Zoe Financial can help.
Zoe Financial is an online platform that connects you to vetted financial advisors. After filling in some information about yourself and your finances, you will be matched with two to three financial advisors who are best suited to help you with your financial goals.
You can view the advisors’ profiles, read past client reviews and book an initial consultation for free with no obligation to hire. With Zoe Financial, you don’t have to worry about going it alone because you have their professional guidance as you embark on your retirement-planning journey.
Read more: The average cost for health insurance has jumped to $8,435/year — but just a few minutes can help you find more affordable coverage
3. You can still get the benefit if you’re divorced, but not if you’re remarried before 60
A survivor can be an ex-spouse if the marriage lasted at least 10 years and the ex-spouse is at least 60 years old (or 50, if disabled).
A surviving ex-spouse is eligible for the same benefit as the surviving spouse, but it won’t impact the surviving spouse’s ability to collect survivor benefits — they will both receive the amount they’re entitled to.
However, if the ex-spouse remarries before the age of 60, they become ineligible to collect survivor benefits unless the marriage ends.’
2. There isn’t a time limit
There’s no time limit on claiming your survivor’s benefits — and it could be in your best interest to wait. While you should report the death as soon as possible, you can decide when to claim survivor benefits based on what makes sense for your financial situation. For example, you may want to wait until you reach full retirement age, so you’re entitled to 100% of your late spouse’s benefit.
If one spouse earned considerably more than the other during their working life, it may make sense to delay filing for one benefit over the other. Avoid leaving money on the table by talking to a professional at Empower about the best strategy for your particular situation.
Empower is a unique digital suite of finance tools designed to help you stay on top of your finances — from investment strategies to budgeting and even wealth management.
When you sign up for Empower, you can connect with one of their financial professionals to help build a personal strategy with your unique financial goals in mind.
Empower’s team of professionals will help you make the most of your survivor’s benefits so you don’t have to tackle it all on your own
1. If your late spouse filed early, the widow(er)’s limit could help
If the late spouse filed early for Social Security, it means the surviving spouse will be limited to the resulting lower payout indefinitely. The widow(er)’s limit came about to offer some protection for spouses in this situation. Technically called RIB-LIM (which stands for retirement insurance benefit limit), the provision allows surviving spouses to collect up to 82.5% of the deceased’s full-retirement-age benefit.
Preparing for end-of-life needs
Also important to know: if, at the time of death, the deceased hadn’t yet claimed Social Security, survivors are still eligible to receive benefits.
Beyond Social Security, there are multiple other factors to consider when you are thinking about what happens to you, your money and your possessions.
While it can be tempting to procrastinate on this subject and possibly leave planning for death until you reach old age, you may want to consider preparing well ahead of time — especially if you have children, or will be leaving behind a large portfolio of assets without clear divisions for your beneficiaries.
Trust & Will is a company that aims to make estate planning simple, accessible, and affordable for all Americans.
You can easily create, edit, manage and share your will online through their helpful platform. while their team provides you provides you with thoughtful, concise, and human support. That means you can make sure your loved ones know, understand and have input on exactly what your plan is, before you pass.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
