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In this previous article we addressed some of the most common questions about Social Security Spousal Benefits. Keeping with the theme of developing FAQ sheets, today I’ll go through some of the most common questions about Social Security Survivor Benefits.
Survivor Benefits are available when a Social Security recipient passes away and leaves surviving dependents – spouse, children, and other dependent family members.
Social Security Survivor Benefits FAQ
1. Q: What survivor benefits are available to my spouse?
A: If your spouse is at least age 60 (or age 50 if disabled), he or she may be eligible for a survivor benefit that is based upon your benefit upon your passing. How the benefit is calculated becomes very complicated, with factors of the age of the surviving spouse, the benefit status of the deceased spouse (whether or not the late spouse was receiving benefits at death), as well as when the benefits began if he or she was already receiving benefits.
The maximum benefit that can be received by a surviving spouse who is at Full Retirement Age is 100% of the benefit that the late spouse was receiving upon his or her death. The minimum is 71.5% of the decedent’s Primary Insurance Amount (PIA) – the amount that the late spouse would receive (or would have received) if he or she filed for benefits at his or her Full Retirement Age.
If the surviving spouse is under age 60 and not disabled, the survivor benefit is only available if the surviving spouse is caring for at least one child/dependent of the late spouse who is under the age of 16. This benefit is equal to 75% of the decedent’s PIA.
2. Q: What survivor benefits are available to my other dependents?
A: Survivor benefits are available to minor children when a parent or legal guardian who has at least 40 quarters of coverage dies. For a child under age 18 (19 if a full-time student), the benefit is 75% of the decedent’s PIA. If the child is disabled prior to age 22, this benefit is available for life.
For parents, grandparents or other dependents who were provided 50% or more support by the decedent, a dependents’ survivor benefit of 75% is also available.
3. Q: What survivor benefits can I receive when my ex-husband dies?
A: As a surviving ex-spouse, if your marriage lasted for at least 10 years and you have not remarried you are eligible for the same benefits as if you were currently married to the decedent when he passed away. So, as long as you are 60 years of age or older, you can file for benefits based on the late ex-spouse’s record.
4. Q: Are there any limits to the amount of benefits that can be paid on an individual decedent’s record?
A: There is a Family Maximum benefit amount (FMax) that ranges from 150% to 180% of the primary numberholder’s PIA. If the total benefits that are being paid on an individual record exceeds the FMax, all benefits are reduced pro rata to the maximum. Survivor benefits paid to an ex-spouse of the decedent are not counted toward the FMax limit.
5. Q: Are there any restrictions for a surviving spouse to receive survivor benefits?
A: If a surviving spouse remarries before age 60, he or she is not eligible for survivor benefits based on a deceased spouse. If he or she subsequently divorces or the current spouse dies (making the surviving widow(er) no longer currently married), survivor benefits are once again available to him or her. The same restriction applies to an ex-spouse.
6. Q: Does receiving a survivor benefit have an impact on my own retirement benefit? I am 60 years old, and will be eligible for a larger benefit based upon my own record when I reach Full Retirement Age.
A: As long as you’re eligible (or will be) for the benefits, you can take either the survivor benefit first and switch to your own benefit later if it’s more, or vice versa. Filing for a survivor benefit early has no impact on a later retirement benefit, and the same goes for filing early for a retirement benefit – no impact on future survivor benefits.
7. Q: Are there earnings limits on survivor benefits?
A: Yes, just the same as with other benefits, if you earn more than the annual limit in any year before you reach FRA, $1 for every $2 over the limit ($15,480 in 2014) will be withheld by Social Security. During the year that you will reach FRA, the limit is increased to $41,400, and the withheld benefits are only $1 out of every $3 over the limit. These withheld funds will be credited back to you once you reach FRA. These limits apply to any survivor benefits, whether spouse, dependents’, or ex-spouse survivor benefits.
8. Q: Are there any benefits available if the late spouse did not have enough quarters of coverage, such as if he was very young?
A: For the surviving spouse caring for a child younger than age 16, reduced benefits are available if the deceased spouse had earned at least 6 quarters of credit in the three years prior to his or her death. Any amount of quarters between the minimum of 6 and the maximum of 40 would allow for a phased increase in the benefit amount.