Susan: I am 68-year old widow and I am collecting my Social Security retirement benefit based on my earnings. Could I stop collecting my retirement benefit, switch to my survivors benefit and then switch back to my retirement benefit at age 70?
MBF: No. Although retirement and survivors benefits represent two different pots of money, and in many cases you can collect one type of benefit first and then switch to the other type later, much depends on the relative amount of the two benefits and whether you have begun collecting either one.
If you are eligible for both types of benefits but haven’t applied for either one yet, you can apply for either retirement or survivors benefits now and switch to the other, higher benefit at a later date.
But people like you who are already receiving retirement benefits can only apply for survivors benefits if it is larger than the retirement benefit you are currently receiving.
If you began collecting retirement benefits less than 12 months ago, you may have another option.
You could withdraw your application, repay any benefits you already received, then apply for survivors benefits. Then you can reapply for the retirement benefits later when they will be higher because of your older age.
Anne: A surviving ex-spouse, who was married for more than 10 years and is still single, earns more than his deceased ex-wife. He would like to retire early. Can he collect survivors benefits at age 60 and then switch to his own higher benefit later? Or is he required to collect his own retirement benefit because it is bigger?
MBF: Yes, he can collect reduced survivors benefits as early as age 60 and switch to his own retirement benefits at full retirement age or later. Survivors benefits are worth the maximum amount if he collects them at his FRA but retirement benefits continue to grow by 8% per year between your FRA and age 70. Both types of benefits are subject to earnings restrictions if you continue work while collecting your benefit before your FRA.
Mary Beth Franklin, a certified financial planner, is a contributing editor for InvestmentNews.
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