Q. When a higher earner dies first, what's the best strategy for the surviving spouse to claim social security benefits?
A. If a higher-earnings spouse dies first, for the survivor, should he or she claim the social security benefits based on his or her own earnings or based on the survivor benefits? This could be a quite complicated questions because there are many factors to consider. But we will review the basics of social security survivor benefits first below.
Basics of Survivor Benefits
Anyone's full social security benefits start at age 66, however, you can collect from age 62, but the benefit amount will be permanently reduced by a certain percentage for each month you claim before age 66. For example, you can collect about 75% of your full benefit at age 62. For each month you delay after age 66, your benefit will increase by a certain percentage - up to 8% - until age 70.
A widow or widower is entitled to a survivor benefit that is equal to 100% of the deceased spouse's benefit, as long as the survivor waits until full retirement age to collect. However, the survivor can claim a survivor benefit as early as age 60, although the benefit will be reduced.
In our next blogpost, we will analyze the factors that impact the surviving spouse's benefit claim decision.
A. If a higher-earnings spouse dies first, for the survivor, should he or she claim the social security benefits based on his or her own earnings or based on the survivor benefits? This could be a quite complicated questions because there are many factors to consider. But we will review the basics of social security survivor benefits first below.
Basics of Survivor Benefits
Anyone's full social security benefits start at age 66, however, you can collect from age 62, but the benefit amount will be permanently reduced by a certain percentage for each month you claim before age 66. For example, you can collect about 75% of your full benefit at age 62. For each month you delay after age 66, your benefit will increase by a certain percentage - up to 8% - until age 70.
A widow or widower is entitled to a survivor benefit that is equal to 100% of the deceased spouse's benefit, as long as the survivor waits until full retirement age to collect. However, the survivor can claim a survivor benefit as early as age 60, although the benefit will be reduced.
In our next blogpost, we will analyze the factors that impact the surviving spouse's benefit claim decision.
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