INmail: Unusual rules regarding survivors benefits

Scott: How does Social Security treat widows who are also entitled to their own retirement benefit?

MBF: Survivors benefits and retirement benefits are two different pots of money. If you are eligible for both, you may be able to collect one type of benefit first and switch to the other later in either order, regardless of when you were born. In addition, there are several unusual rules that apply to survivors benefits.

Full retirement age for survivor benefits may be different than for retirement benefits depending on the birth year. For example, if your client was born in 1956, her FRA for retirement is 66 and 2 months, but her FRA for survivors benefits is 66. See www.ssa.gov/benefits/survivorchartred.html for details.

If you already receive benefits as a spouse, your benefit will automatically convert to survivors benefits once the death is reported to the Social Security Administration. But if you are also eligible for retirement benefits and haven’t applied for them yet, you can apply for retirement or survivors benefits now and switch to the other, higher benefit later.

If you’re caring for a child under age 16 or a permanently disabled adult child who gets benefits on the record of your late spouse, you can collect survivors benefits regardless of your age.

The monthly amount you receive is a based on a percentage of the deceased’s basic Social Security benefit and your age when you begin receiving benefits.

Reduced survivor benefits are available as early as age 60 (50 if disabled) and are worth 71.5% of the worker’s full benefit amount, increasing up to 100% if claimed at full retirement age or older.

If the person who died was receiving reduced benefits, SSA bases survivors benefits on that amount. However, it’s possible to receive a larger amount that the deceased worker was collecting if you wait until your FRA to claim it.

The divorced spouse of a worker who dies can get benefits the same as a widow or widower, provided that the marriage lasted 10 years or more.

If you remarry after you reach age 60 (age 50 if disabled), the remarriage will not affect your eligibility for survivors benefits.

Mary Beth Franklin, a certified financial planner, is a contributing editor for InvestmentNews.