If You Die, How Much Social Security Will Your Spouse Inherit?

Losing a spouse is likely one of the hardest experiences someone can go through. Having to deal with financial matters during this time only adds to the stress. Yet it is essential for your own security that this be accomplished. 

While it might be small consolation to the loss of a loved one, Social Security offers survivor benefits to help ease some of the financial burdens. Here’s an easy-to-understand guide on the essentials of what you need to know about Social Security survivor benefits.

Survivor benefits eligibility

Becoming eligible for Social Security survivor benefits hinges on certain criteria. First, you must qualify to receive them, meaning you have to be one of the following people:

• The surviving spouse.
• A divorced spouse (if the marriage lasted at least 10 years). 
• A child of the deceased 
• A dependent parent of someone who worked and paid Social Security taxes before they died.

That’s only the first hurdle to get across. If you make that cutoff, then your age will be a factor. To claim eligibility for survivor benefits you have to fit in one of the following three categories:

• Surviving spouses can generally claim benefits at age 60 (or 50 if disabled).
• If you’re caring for the deceased’s child who is under 16 or disabled, there’s no age requirement.
• Children can receive benefits if they’re unmarried and under 18, or up to 19 if still attending elementary or secondary school, or have a disability that started before age 22.

Applicable to divorced spouses, you must be unmarried to claim survivor benefits based on your ex-spouse’s record.

If you meet all of the foregoing requisites, you can claim survivors benefits. But how much are you entitled to?

How much can a surviving spouse expect?

Again, it all depends. The amount of survivor benefits you can receive rests on several factors, primarily the deceased spouse’s earnings. Benefits are calculated based on the deceased’s Primary Insurance Amount (PIA), which is the amount they would have received at their full retirement age (FRA).

Yet the age of the survivor is also taken into account. If you are at your own full retirement age, you can receive 100% of your deceased spouse’s PIA, whereas if you are between age 60 and FRA, benefits will be reduced. For example, at age 60, you’d receive about 71.5% of the PIA, though this percentage increases as you get closer to FRA.

If you are younger than 60, and if you’re caring for a minor or disabled child, you can get 75% of the PIA, regardless of your age.

Here are some examples that can make the above clearer.

Example 1: If Jane’s husband, Tom, was receiving $2,000 per month at his FRA when he passed away and Jane is 67 (her FRA), she would receive $2,000 monthly. If she claimed the benefits at age 60, though, she would only get about $1,430, or 71.5% of $2,000.

Example 2:  Mark’s wife passes away, but he is caring for their 12-year-old child, meaning he can claim 75% of his wife’s PIA ($1,500 if her PIA was $2,000) regardless of his age.

In addition to the ongoing monthly payments a survivor can receive, Social Security also makes a one-time, lump-sum payment of $255 if the survivor was living with the deceased or, if there’s no spouse, to a child who is eligible for benefits. The purpose is to help with immediate expenses following the death.

How to apply for survivor benefits

As with most government programs, there are several hoops a survivor has to jump through before receiving benefits. The first step, though, is to notify Social Security of the death of the individual. While the funeral home will typically report the death, you can also inform Social Security directly.

The next step is critical. You have to gather the documentation necessary to prove the death as well as your eligibility to receive the benefit. Here is everything you should have to submit to Social Security:

• Proof of Death (death certificate)
• Your birth certificate
• Marriage certificate if applying as a spouse
• Divorce decree if applying as an ex-spouse
• W-2 forms or self-employment tax returns for the deceased
• Social Security numbers for you and the deceased
• If applicable, children’s birth certificates or proof of disability
• The last step is to actually apply and Social Security gives you several options. You can apply online using the SSA’s website for an online application if you’re at least 62, or you can apply by phone to schedule an appointment or submit the application over the phone. Call (800) 772-1213.

You also have the option of applying in person by visiting your local Social Security office, but call for an appointment first.

Common misconceptions about survivor benefits

Misconception 1: “I have to claim survivor benefits immediately after my spouse dies.” There is no immediate deadline for filing a claim and you can do so whenever it is financially beneficial for you.

Misconception 2: “I can’t work if I’m receiving survivor benefits.” Actually, you can work. However, if you’re under FRA, there is an earnings limit that might reduce your benefits if you exceed it.

Misconception 3: “Survivor benefits add on top of my own retirement benefits.” Unfortunately, you will only receive the higher of the two benefits, not both of them simultaneously.

Strategic considerations to receiving survivor benefits

Decide whether your own retirement benefit would be higher than the survivor benefit. If it is, you might consider claiming the survivor benefit early and then wait to claim your own retirement benefit up to age 70 to maximize that benefit.

You should also be cognizant that if you remarry before age 60 (or 50 if disabled), your eligibility for benefits based on your former spouse’s record typically ends. But, if you remarry after these ages, you can continue to receive survivor benefits. It could be worthwhile financially to delay remarrying until after claiming the benefit.

Additionally, there is a family maximum for survivor benefits. Social Security There caps the total amount of benefits payable to a family on one deceased worker’s record. So if multiple family members claim benefits, they might be reduced to stay within this limit.

There are, of course, tax Implications, too. Survivor benefits could be taxable depending on your total income, so it would be wise to consult with a tax advisor before claiming anything.

Key takeaways

Social Security survivor benefits are designed to provide financial support when you lose a loved one. Understanding eligibility, how benefits are calculated, and what you are entitled to, as well as  the strategic options available can help ensure you receive the maximum benefit that you are entitled to. 

Remember, each situation is unique, so consulting with a Social Security representative or financial advisor can be invaluable in making informed decisions about when and how to claim these benefits. Whether it’s through a one-time payment or ongoing monthly support, these benefits can offer some financial peace of mind during a challenging time.