Understanding Social Security Survivor Benefits

Almost everyone is familiar with the idea of Social Security, but few people understand the benefits it offers to the family members of a deceased worker. These benefits, known as survivor benefits, can help cover everyday expenses, replace lost income, and ease the burden of sudden financial responsibilities. Understanding survivor benefits is crucial for navigating financial challenges that arise after losing a loved one.

Who is eligible for survivor benefits?

You may qualify for survivor benefits if:

• Your spouse died, you were married for nine months or more, and you did not remarry before the age of 60.
• Your ex-spouse died, you were married for more than 10 years, and you did not remarry before age 60.
• You are a child of the deceased and are under 18.
• You are a surviving spouse and care for the child of the deceased.
• You are the parent of the deceased and were receiving at least half of your support from them, and are 62 or older.

When can you file for survivor benefits and how much will you receive?

Unlike traditional Social Security benefits, which allow you to start collecting at 62 years old, you can begin collecting survivor benefits at age 60. However, if you file for survivor benefits before your Full Retirement Age (FRA), you will receive a reduced amount of what your spouse was entitled to. Waiting until your FRA allows you to receive 100% of that amount. There is no advantage to delaying survivor benefits past your FRA.

The amount you receive depends on whether or not your spouse filed for benefits before their death:

1. If the deceased did not file for benefits before their death and died:
   • before their FRA: You are entitled to the full retirement age benefit of the deceased.*
   • after their FRA: You are entitled to what the deceased would have received at the time of their passing.*
2. If the deceased filed for benefits before their death and filed:
   • before their FRA: You are entitled to receive the greater of the amount they were receiving at death or 82.5%
   • on or after their FRA: You receive the benefit amount the deceased was receiving at the time of death.*

*The amount you are entitled to is adjusted based on the age at which you file for survivor benefits.

You cannot collect your own benefits and your deceased spouse’s benefits simultaneously. However, you can maximize your total benefits by claiming reduced survivor benefits at 60 years old and then switching to your own benefits once you turn 70 years old, which is the age that your normal Social Security benefits stop increasing. You can also start claiming your own benefits at 62 and then switch to survivor benefits once you reach FRA, if doing so would result in a higher benefit to you.

How much will other survivors receive?

• Children of the deceased: If you meet the criteria, you are entitled to receive up to 75% of the deceased’s full retirement age benefit.*
• Surviving spouses caring for the deceased’s children: You receive 75% of the deceased’s full retirement age benefit.*
• Parents of the deceased: If you meet the eligibility criteria, you receive 82.5% of the deceased’s full retirement age benefit. If two parents are receiving benefits, each will get 75%.*

*This amount could be subject to the family maximum benefit which is 150-180% of the deceased’s benefits.

What happens if you continue to work while collecting survivor benefits?

Just like traditional Social Security, survivor benefits are subject to an earnings test. You can continue to work while collecting survivor benefits; however, the amount you receive will be reduced if you are younger than full retirement age and earn more than a specific limit. If you earn more than $22,230 per year, for every $2 you earn over that limit, your benefit will be reduced by $1. However, in the year you reach your FRA, the earnings limit increases to $59,520, and for every $3 you earn over the limit, $1 is deducted from your benefits. Once you finally reach your FRA, there is no longer an earnings penalty.

Lump-Sum Death Benefit

In addition to survivor benefits, there is a little known additional benefit called the lump-sum death benefit of $255, payable to surviving spouses. If no spouse is available, the payment is distributed evenly among the deceased’s children. Note that this benefit is not available to ex-spouses and is in addition to regular survivor benefits. Although obscure, at the time the benefit was implemented, this was the government’s way of paying for burial arrangements.

Social Security survivor benefits provide financial support to people dealing with the loss of a loved one who was a worker. These benefits are available to spouses, children, and parents who meet specific criteria, providing financial stability during a challenging time. Understanding when and how to apply for survivor benefits is important, as the amount received can vary based on factors such as the age at which benefits are claimed and whether the deceased had begun receiving benefits before their passing. Consider speaking with a financial advisor to determine what options will best meet your needs.

For more information on Social Security Survivor’s Benefits, visit: https://www.ssa.gov/survivor

The information provided herein is for educational purposes only, and should not be construed as advice, including, but not limited to tax, legal, insurance, investment, or retirement advice. For your specific planning needs, please seek the advice of Integris Wealth Management, your tax accountant, attorney, insurance agent, or other professional as appropriate. Investing involves the risk of loss.