A wrinkle in SS survivor benefit I didn't know

[Time2]

In quotes is an example from the bottom of this page.
https://www.eagleclawcapital.com/in...days-social-security-claiming-strategies.html



"After Tito reaches age 70 and claims his Social Security benefit, the couple has a monthly Social Security income of about $3,490.
If Tito dies first, Maria’s survivor benefit will be 100% of Tito’s benefit at his death (if she does not start taking benefits until her full retirement age)."

This is the wrinkle I didn't know, > "if she does not start taking benefits until her full retirement age"



First) Is this accurate info?
If true, this makes the often heard advice, higher collected at 70 lower earner at 62 advice not quite as advantageous.





Second) What would the reduction amount be in her survivor benefit, If she collected 1yr 10mo early? (in percentage)


My wife will not reach 67 (FRA) for 1yr 10mo after I turn 70.
(I married a beautiful, younger women!



My long laid plan seems to have missed an important wrinkle.

 

[MissMolly]

This means she must wait until her full retirement age to claim Survivor benefits. This is not talking about her own benefits. The two types of benefits are separate and distinct with their own set of rules. One can claim Survivor benefits as early as age 60, but they will be reduced. Waiting until one's own full retirement age to claim Survivor (even if already claiming their own benefits) ensures being able to received 100% of the higher earner's amount.

Chart that shows reduction based year of birth https://www.ssa.gov/benefits/survivors/survivorchartred.html

 

[Time2]

This means she must wait until her full retirement age to claim Survivor benefits.

Meaning, she can collect her benefit at 65yrs 2mo. Then after I die I, she must wait until she is 67 to get 100% of my 70yr SS old benefit?

This is not talking about her own benefits. The two types of benefits are separate and distinct with their own set of rules.

Understood that.

One can claim Survivor benefits as early as age 60, but they will be reduced.

That reduced benefit is my concern.

Waiting until one's own full retirement age to claim Survivor (even if already claiming their own benefits) ensures being able to received 100% of the higher earner's amount.

That works for us. I'm planning on waiting until 70yrs old to collect, to maximize her Survivor check. I expect it will work out just fine. I just need to let her know, do not collect survivor benefits before she reaches 67 yrs old. I'm expecting to be around for her 67th birthday, so it should not matter.


One more question, if I should die before I start collecting SS,

Will her survivor benefit be the amount I would have collected on the day of my death?

Only 1 more year before we start collecting our benefit.
Thanks

 

[Exchme]

This means she must wait until her full retirement age to claim Survivor benefits. This is not talking about her own benefits. The two types of benefits are separate and distinct with their own set of rules. One can claim Survivor benefits as early as age 60, but they will be reduced. Waiting until one's own full retirement age to claim Survivor (even if already claiming their own benefits) ensures being able to received 100% of the higher earner's amount.

Chart that shows reduction based year of birth https://www.ssa.gov/benefits/survivors/survivorchartred.html

Thank you for linking the chart. Since my wife was born in 1960, I knew her maximum survivor benefit age occurrs at age 66 & 8 months (vs 67 as the full retirement age on on her own record), but didn't realize that was a part of eventually phasing in age 67 as the age to claim full survivor benefits.

If folks are in the unfortunate position of having lost a spouse, a strategy that's often best is to claim on their own record at 62 and let the survivor benefit grow to its maximum, per the chart MissMolly posted. As always, Opensocialsecurity.com will provide great guidance.

I seem to recall posters that have experienced loss of a spouse cautioning that when you claim SS, they will automatically sign you up for the largest benefit you are entitled to at that moment, so if you are claiming on your record only, you have to specifically tell them that.

 

[Evee]

"After Tito reaches age 70 and claims his Social Security benefit, the couple has a monthly Social Security income of about $3,490.
If Tito dies first, Maria’s survivor benefit will be 100% of Tito’s benefit at his death (if she does not start taking benefits until her full retirement age)."

What happens if she waits until she is 70 to get the survivor benefit? Does it go up betweeen 67 and 70?

 

[MissMolly]

See responses in RED

Meaning, she can collect her benefit at 65yrs 2mo. Then after I die I, she must wait until she is 67 to get 100% of my 70yr SS old benefit? She must wait until her full retirement age.



Understood that.
That reduced benefit is my concern.
That works for us. I'm planning on waiting until 70yrs old to collect, to maximize her Survivor check. I expect it will work out just fine. I just need to let her know, do not collect survivor benefits before she reaches 67 yrs old. I'm expecting to be around for her 67th birthday, so it should not matter.


One more question, if I should die before I start collecting SS,

Will her survivor benefit be the amount I would have collected on the day of my death? Yes

Only 1 more year before we start collecting our benefit.
Thanks

 

[MissMolly]

Meaning, she can collect her benefit at 65yrs 2mo. Then after I die I, she must wait until she is 67 to get 100% of my 70yr SS old benefit?



Understood that.
That reduced benefit is my concern.
That works for us. I'm planning on waiting until 70yrs old to collect, to maximize her Survivor check. I expect it will work out just fine. I just need to let her know, do not collect survivor benefits before she reaches 67 yrs old. I'm expecting to be around for her 67th birthday, so it should not matter.


One more question, if I should die before I start collecting SS,

Will her survivor benefit be the amount I would have collected on the day of my death?

Only 1 more year before we start collecting our benefit.
Thanks

"After Tito reaches age 70 and claims his Social Security benefit, the couple has a monthly Social Security income of about $3,490.
If Tito dies first, Maria’s survivor benefit will be 100% of Tito’s benefit at his death (if she does not start taking benefits until her full retirement age)."

What happens if she waits until she is 70 to get the survivor benefit? Does it go up between 67 and 70?

It doesn't increase the amount. The maximum Survivor benefit available is whatever the deceased spouse was entitled to.

 

[Time2]

See responses in RED

I think you are emphasizing that her FRA is not 67 it is 66yr 10mo.
Thanks,

 

[MissMolly]

I think you are emphasizing that her FRA is not 67 it is 66yr 10mo.
Thanks,

Yes, sorry, I wasn't clear. She can collect her own benefits whenever she wants to start (after age 62) but must wait until 66yr 10mo to claim Survivor to get 100% of the Survivor benefits.

 

[finnski1]

Yes, sorry, I wasn't clear. She can collect her own benefits whenever she wants to start (after age 62) but must wait until 66yr 10mo to claim Survivor to get 100% of the Survivor benefits.

I've learned something new already. I assumed your full survivors was the same as your FRA of the year you were born when actually it is a few months earlier. In my case it is actually 4 months earlier than my individual FRA. DW is 3 years older than me.

 

[Dtail]

What about the case whereby the surviving spouse started collecting SSDI before age 60?