Social Security: If You Are the Survivor

If you’re like most people, you don’t spend a lot of time thinking about Social Security. According to a 2023 Nationwide survey, less than half of US adults (49%) say they know how to maximize their Social Security Benefits. The reality is a bit worse. In the same survey, just 8% of participants were able to correctly identify all the factors that go into calculating these benefits.

In our view, these ‘benefit blind-spots’ make perfect sense. Social Security is a huge system that covers multiple discrete benefits (each with their own unique rules and calculations). Consequently, we believe it is our responsibility to help our clients identify particular aspects of the system that are more important than others. One such area is Social Security benefits if you are a survivor.

When a family member passes away, navigating the aftermath includes understanding the Social Security benefits that may be available to survivors. Needless to say, having a basic understanding of these rules and benefits in advance can be a big help. With that said, here are some essential points to keep in mind:

Who is Eligible for Survivor Benefits?

Survivors may include the (1) deceased’s spouse, (2) children, and (3) dependent parents.
The deceased must have earned sufficient credits through work covered by Social Security; typically, 40 credits (10 years of work) are needed, but younger workers may qualify with fewer credits.

Types of Survivors Benefits

Spouses can receive benefits at age 60 or older, or at 50 if disabled.
Spouses caring for the deceased’s child under age 16, or disabled, may receive benefits at any age.
Children can receive benefits if they are unmarried and under age 18, or up to age 19 if attending school full-time, or any age if disabled before 22.
Divorced Spouses may qualify if the marriage lasts at least 10 years.
Dependent Parents aged 62 or older may be eligible if they were financially dependent on the deceased.

Reporting a Death

Social Security should be notified promptly when a death occurs, often handled by the funeral home.
Survivor benefits cannot be applied for online; you must contact Social Security directly at 1-800-772-1213.

Death Benefits

A (very small) one-time lump-sum death payment of $255 may be available to the surviving spouse or eligible child.

Survivors Benefit Amount

Survivor benefit amounts are based on the earnings of the person who died. The more they paid into Social Security, the higher your benefits would be.

How much of the deceased worker’s benefit can the survivor receive?

Surviving Spouse (full retirement age or older) — 100%
Surviving Spouse (age 60 through full retirement age) — 71 to 99%
Surviving Spouse with a disability aged 50 through 59 — 71%
Surviving Spouse (any age, caring for a child under age 16) — 75%
Child Under 18 (age 19 if still in secondary school; or who has a disability) — 75%
Dependent Parent (age 62 or older) receive: (1) One surviving parent — 82%, (2) Two surviving parents — 75% (to each parent)

*Percentages for a surviving divorced spouse would be the same as above.

Benefits Payment and Adjustments

If the deceased was receiving Social Security benefits, any payments made for the month of death or later must be returned.
Family benefits are capped at a maximum family amount, typically between 150% and 180% of the deceased’s benefit rate.
Earnings limits may reduce benefits for survivors who are working while receiving benefits.

Special Considerations

Benefits may be affected by remarriage, other pensions, and eligibility for other benefits.
Survivors can potentially switch between benefits (e.g., from survivors to retirement benefits) depending on which is higher and other eligibility factors.

Despite all this information, it is important to remember that each and every financial situation is unique. If you have any questions about your specific situation, please don’t hesitate to reach out.

References

“The Nationwide Retirement Institute® 2023 Social Security Survey.” Aug. 2023.

“If You Are the Survivor.” SSA.Gov, Social Security Administration.

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