Following the loss of a spouse, you may experience a range of emotional and physical impacts, leaving you disoriented and uncertain about the next steps. Making decisions, particularly financial ones that could affect your current and future well-being, can be particularly challenging.
In the immediate aftermath, you will be faced with decisions regarding Social Security benefits for yourself and those of your deceased spouse. Given the emotional distress and turmoil that often accompany such a loss, it is advisable to consider these choices well before such an unfortunate event occurs.
I suggest consulting with a financial advisor or the Social Security Administration to discuss how you and your spouse can plan for the management of Social Security survivor benefits in the future. To help you prepare, this article discusses the Social Security benefits available to a surviving spouse.
Monthly payments of Social Security survivor benefits are available to you as a surviving spouse of a worker eligible to receive Social Security if you:
When a spouse dies, you must notify the Social Security Administration as soon as possible. However, you cannot report the death—or apply for benefits—online. It must be done by phone, through the mail, or in person.
Most often, the funeral home managing your deceased spouse’s arrangements will report the death to the Social Security Administration. You will need to provide the funeral home with your spouse’s Social Security number.
If you are not receiving Social Security benefits, the Social Security Administration suggests you apply as soon as possible after a spouse’s death. In some circumstances, Social Security benefits might not be retroactive.
However, applying for survivor benefits does not mean you need to begin receiving them right away. It is imperative to understand how your SS survivor benefits are impacted by age, earned income, and if you decide to remarry. A good financial advisor will be able to educate, inform, and help you plan for efficient use of your Social Security survivor benefits.
If you are already receiving Social Security benefits based on the work record of your spouse or your parents, there is no need to apply for survivor benefits. The Social Security Administration will automatically switch you to survivor benefits.
However, if you’re receiving retirement or disability benefits based on your own work record, you will need to apply for survivor benefits. The Social Security Administration will then determine if you are eligible for a higher benefit amount as a survivor.
Here are a few more key points to keep in mind when applying for survivor benefits. This is where things can get complicated—but that’s why we’re here to help you every step of the way.
If you claim survivor benefits before reaching your Full Retirement Age (FRA), your full benefits may be reduced if your income exceeds certain limits. This catches many people by surprise, so it’s important to understand these lesser-known details when applying.
Starting to collect survivor benefits before age 60 and before your FRA can lead to a permanent reduction in your Social Security benefit. It’s a big decision with long-term impacts.
Consider collecting survivor benefits (as long as financially possible) before switching to your own benefits to enhance delayed retirement credits. This strategy can be tricky, so it’s best to reach out to a financial advisor for advice.
It’s crucial to note that remarrying before age 60 can affect your eligibility for survivor benefits, meaning you could potentially forfeit them. It’s important to understand the implications as you move forward, and we can help you plan accordingly to manage any unexpected losses.
When applying for Social Security benefits, the Social Security Administration may request a variety of documents. These may include:
The list of questions you’ll need to answer is even longer. Again, the Social Security Administration suggests applying as soon as possible, even if you do not have all the documents.
As with any kind of estate planning, many couples don’t want to talk about the possible death of their spouse. However, having a plan in place allows you to gather the required documents and answers so you have them when you need them.
If you’re married, prioritizing your spouse’s financial stability in the event of your passing is crucial for their future. At Wealth Advocate Group, we help you by walking you through the necessary steps to safeguard your loved ones.
Let us work with you to create a robust plan that provides peace and confidence for you and your family. Reach out to us at Contact@Wadvocate.com or 440-505-5578 to schedule an introductory consultation.
Lauren Coverdale joined Wealth Advocate Group in 2019 as an intern. Upon completion of her undergraduate degree, she joined the team as a paraplanner. As a paraplanner, Lauren provides analysis of client investments, estate planning, cash flow, and retirement readiness for her team. Lauren graduated from John Carroll University in 2020 with a Bachelor of Science in Business Administration in Finance with a concentration in Wealth Management and Financial Planning as well as a minor in Entrepreneurship. In 2021, Lauren also obtained her MBA from John Carroll University. Lauren received her CFP® designation in 2023. She also holds her Series 7 license through LPL Financial and 66 securities licenses through LPL Financial and Stratos Wealth Partners. In her spare time, she enjoys being outdoors, traveling, and spending time with her husband and their dog, Indi. To learn more about Lauren, connect with her on LinkedIn.
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