Widows and widowers may be missing out on significant financial support through Social Security survivor benefits by failing to file for them. Those eligible can begin claiming these benefits at age 60, or at age 50 if they are disabled. However, many do not realize they are entitled to this aid, leading to an alarming trend where more than half of eligible children and numerous widowed spouses do not apply. Applications for survivor benefits have markedly declined from 154,000 in 2012 to 114,000 by 2021.
To qualify, individuals must be connected to the deceased through marriage, divorce, or dependency, and the deceased must have paid into Social Security for at least ten years. Additionally, the benefits are based on the earnings record of the deceased and can be claimed without retroactive payments. It is essential for claimants to actively communicate their intent to the Social Security Administration; the agency will not prompt individuals to apply.
Claiming survivor benefits early may lead to a lower monthly payout, generally between 71.5% and 99% of the deceased’s Primary Insurance Amount. However, this approach is often financially advantageous, allowing the surviving spouse to delay their own benefit claim until a later age when it may be higher.
It is noteworthy that if a surviving spouse remarries before age 60, their survivor benefits will be terminated, a factor often referred to as a “marriage penalty.”
This situation raises concerns about financial literacy regarding Social Security benefits, particularly among those who have experienced the loss of a spouse at a young age.
Why this story matters: Many eligible individuals are unaware of their rights to survivor benefits, risking significant financial losses.
Key takeaway: Claim survivor benefits at age 60 (or age 50 if disabled) to ensure financial support after a spouse’s death.
Opposing viewpoint: Some financial experts argue that waiting for full retirement benefits could yield higher payouts, depending on personal financial situations.
