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Ask Rusty – Widow’s Benefit
Dear Rusty: I am 74 years old, born in October of 1942, and in rapidly declining health. I took my Social Security early, as soon as I was 62, and now get $1838 per month in Social Security benefits (before Medicare premiums are taken out). My wife of many years also took her Social Security at age 62 and she gets $787 a month. From what I understand, when I pass away she will get my full benefit instead of what she gets now. I’m hoping that’s true because she won’t be able to make it with only $787 a month. Signed: Planning for her.
Dear Planning: First, you’re to be commended for planning ahead for that time when your wife will be left without you. Dealing with such a loss is devastating enough without adding a severe loss of income into the mix. Let me quickly put your mind at ease – your wife will get at least as much as your benefit amount, $1838 per month. This is known as her survivor’s, or widow’s benefit.
Normally, the maximum Widow’s Benefit equals the benefit amount that the deceased spouse was receiving, meaning your wife would get the same amount you were receiving before you died – in this case $1838 per month. There is, however, a somewhat obscure rule which may apply in this case (actually there are a few special exceptions to the maximum widow’s benefit rule, but the others don’t apply here). The exception I’m speaking of is a Social Security rule which applies only when the deceased spouse claimed benefits before their full retirement age, and the surviving spouse is eligible for Widow’s benefits. The surviving spouse has the option of claiming either their own benefit or the widow(er)’s benefit, and in this case your wife would obviously claim the widow’s benefit. But (and this is a big but) because you claimed your Social Security benefit early, your widow is entitled to either of the following, whichever is higher:
- The amount of benefit you (the deceased spouse) were receiving, or,
- 82.5% of what your benefit would have been had you (the deceased spouse) waited until your full retirement age to start your Social Security benefits.
Using the numbers you gave me as an example, since your reduced benefit amount is $1838/month, your benefit amount at your full retirement age of 65 years and 10 months would have been $2410. Using the above 82.5% exception rule, your wife will be entitled to $1988 per month, instead of the $1838 you are now receiving. That $150 per month will, I’m sure, be important to her after you’re gone, so please make sure she knows to contact the Social Security Administration when the time comes.
(1)The other two exceptions come into play when the surviving spouse’s benefits are affected by the Government Pension Offset (GPO), or when the deceased spouse’s benefits were affected by the Windfall Elimination Provision (WEP). Neither of those exceptions applies in this instance.