By Beth Cooper
Did you know that if you are a widow or widower you can start receiving Social Security Benefits as early as age 60, or age 50 if you are disabled and the disability occurred within seven years of the wage earner’s death? Surviving divorced spouses can also receive survivor benefits if they were married to the deceased wage earner for 10 years or more. If you are still working when you turn age 60, as with all Social Security benefits, there is a limit to how much you can make. This amount is adjusted with the Cost of Living (COLA). Currently, the 2016 limit is $15,720 for someone under Full Retirement Age (FRA) or $41,880 for someone over FRA.
So, how much can you receive? This is where it gets complicated! If you are age 60, not working, or earning less than the allowed limit, you could receive 71.5 percent of your spouse’s full retirement benefit. If your spouse was receiving Social Security benefits prior to his/her death, then Survivor Benefits are based on that amount. A disabled widow/widower age 50 would also receive 71.5 percent of the deceased wage earner’s full benefit. Again, less if the deceased received Social Security benefits prior to his death. The amount you can receive increases with each month, based on your age at the time of filing, up to 100 percent if you are Full Retirement Age, age 66 for someone born between 1945 and 1956. If you have worked yourself and had high earnings, you could switch to your own Social Security benefit as early as age 62.
Did you remarry? Did you know that you could still receive benefits on a previous spouse’s record if you remarried after age 60, age 50 if disabled, or are not currently married? Were you, the surviving divorced spouse, married to the deceased wage earner for 10 years or more? If you meet all the requirements for Survivor Benefits, ie age, unmarried/married after age 60, earnings limit, your benefits would be figured completely separate from another spouse/children eligible on the same record. Similarly, if you were married and widowed twice, you can choose which spouse to receive your benefits from. Depending on your financial situation, you could choose to receive on the lesser record at age 60 or later and switch to the higher record at FRA or sometime before.
The following is an example of a situation where a widow/widower may be eligible for Social Security Benefits in an effort to help you understand some of these complex situations.
This scenario is fairly common:
“Mary is age 70 and married to Bill. They have been married for the past 30 years. Mary worked some in her early years and is receiving a small Social Security benefit of $300 per month. Bill is a retired teacher and did not pay into Social Security. He receives a Teacher’s Retirement Pension. Mary was previously married for 15 years to Tom. They were divorced. Tom is deceased. Bill dies in August. Because Bill never paid into Social Security, Mary is not eligible for Widow’s Benefits on Bill’s record, however, she can be eligible for Surviving Divorced Spouse’s Benefits on her previous husband’s record because she is now unmarried. Tom’s 2nd spouse is already receiving Widow’s benefits on his record. Mary can still receive benefits with no affect on his current widow.”
Confused? Because of the complexity of Survivor’s Benefits, if this is you or someone you know, it is best to check with Social Security at least three months prior to turning age 60 or 50 if disabled, to see what your options are. A Social Security Representative can best handle these questions and guide you through the process.
As mentioned in previous columns, planning is critical. Social Security and other financial income should be part of this planning process.
Look for Beth Cooper’s columns with Living By Your Design in future months. Her background is 37 years as a Social Security Rep. in Central Illinois. For more information, contact Living by Your Design, Inc., focusing on the issues of older Americans: legal, financial, and free guidance for residential referral and healthcare issues. Call: 309-285-8088. Website: www.LivingByYourDesignInc.com. Location: 809 W. Detweiller Dr., Peoria, IL 61615.