How surviving spouses can optimize their Social Security claiming strategies

There are many approaches to claiming Social Security benefits, and it can be difficult to identify a single strategy that works for every individual’s unique circumstances. But broadly speaking, the goal is to claim the benefit(s) that provide the highest possible lifetime payout. Rules surrounding the claiming options for survivors are more nuanced than the two other benefit types (your own retirement benefit and the spousal benefit).¹

When a spouse passes away, navigating financial decisions can feel overwhelming, especially when it comes to the complex rules of Social Security. But making the right choice could significantly enhance the surviving spouse’s income and financial security over their lifetime. 

In this piece, we will explain common strategies that widows and widowers can use to maximize their Social Security benefits. We’ll also share data that can help you decide when to take your own benefit (the one based on your work history and earnings) or claim survivor benefits based on your deceased spouse’s earnings. Note that surviving spouses can switch between their own Social Security benefits and survivor benefits once, and you must do so before age 70. You cannot claim both benefits at the same time.

Confirm survivor eligibility and determine maximum survivor benefit

Generally speaking, there are three requirements for you to be eligible for survivor benefits:

• First, you need to have been married for at least nine months prior to their spouse’s death.
• Second, you need to be at least age 60.²
• Third, if they remarried, they did so after age 60.³

You can call the Social Security Administration (SSA) to confirm eligibility and to find out what your maximum survivor benefit is.⁴

Timing is important when claiming Social Security benefits, because if it makes sense to begin receiving survivor benefits, these benefits most often begin upon notice to the SSA rather than upon the date of the spouse’s death.

Important dates to know—Full retirement ages (FRAs)

The comparison between your personal benefits and their potential survivor benefits will vary based on multiple factors, but the most important of these is your age relative to FRA for survivor benefits (FRAsurv). This is a little tricky, because FRAsurv is generally slightly earlier than FRA for your own benefits.

Start by identifying your FRA and FRAsurv. As a reminder, FRA for retirement benefits is not the age an individual reaches their maximum monthly benefit; you can delay claiming retirement benefits to collect the maximum benefit by waiting to claim at age 70.

FRAsurv, on the other hand, is the age at which the surviving spouse will collect the maximum survivor benefit. Said another way, monthly survivor benefits will not grow any larger if the survivor waits to claim the survivor benefits at a later date than their FRAsurv. However, if they claim their survivor benefits prior to their FRAsurv, they will have a reduced benefit amount.

Claiming strategies based on age groups

Here are some potential claiming steps based on your age at the time of your partner’s passing. All cases examined here assume that the surviving spouse lives until at least age 85. The potentially maximizing claiming strategy may change when the life expectancy is lower than age 85. There are three groups of widows/widowers to examine:

• Group 1 includes those who are age 70 or older.  
• Group 2 includes those between their FRAsurv and age 70.
• Group 3 includes those who are younger than their FRAsurv. 

Group 1: Age 70 or older

For widows or widowers aged 70 or above when their spouse passes, the strategy is straightforward. They should claim the higher of their own retirement benefits or the survivor benefits. Claiming the higher benefit immediately ensures maximum lifetime income.

Those in Groups 2 and 3 face more complex choices, primarily because the timing of their claiming will impact whether they receive the largest monthly benefit available to them for the remainder of their life.

Group 2: Between FRAsurv and age 70

The surviving spouse should compare their personal retirement benefits at age 70 and their maximum survivor benefits to see which is larger. As mentioned previously, when a spouse dies, the surviving spouse should call the SSA for information on their maximum survivor benefit.

More specifically, the survivor benefit is determined by whether the deceased spouse:

• Had started receiving their Social Security benefit.
  • The survivor benefit is the larger of the amount the deceased spouse was receiving when they died or 82.5% of their FRA amount.
• Had not started receiving their benefit:
  • If the deceased spouse died between their FRA and age 70, the survivor benefit is the amount the deceased spouse would have received if they had started receiving it the day they died or 82.5% of their FRA amount.
  • If they died before their FRA, the survivor benefit would be the deceased spouse’s FRA amount.

So, for those in Group 2, who are at or beyond their FRAsurv, the maximum survivor benefit is generally the monthly benefit that the deceased either was receiving at their death or would have received at the age they were at their passing. For example, if the spouse died at age 68 but had not begun collecting their benefits, the amount the deceased spouse would have received at age 68 is the maximum survivor benefit amount.

For widows between their FRAsurv and age 70, the comparison can go one of two ways.

• If their own retirement benefits at age 70 will be larger than their maximum survivor benefits, then their optimal claiming strategy is almost always to file an application strictly for survivor benefits today, then switch at age 70 to their own retirement benefits.  
• If the survivor’s own retirement benefits at age 70 will be smaller than their maximum survivor benefits, they should file for survivor benefits today.

Group 3: Younger than FRAsurv

Similarly, widows or widowers younger than their FRAsurv should compare their personal retirement benefits at age 70 and their maximum survivor benefits to see which is larger.

• The first comparison for this group is based on whether your retirement benefits at age 70 will be larger than your maximum survivor benefits. If so, then your optimal claiming strategy is almost always to file an application strictly for survivor benefits today, then switch at age 70 to your own retirement benefits.

For example: Consider Nan, a widow with an FRA benefit of $1,800 and who is age 62 at the time of her husband’s death. If she waited until age 70, her own retirement benefit would be $2,230. At his death, Nan’s husband was receiving $2,000 per month in benefits, making this the maximum survivor benefit.

• Strategy 1: Nan could begin taking her own reduced $1,260 retirement benefits now. Once she reaches her FRAsurv, she switches to her maximum survivor benefit of $2,000 per month.
• Strategy 2: Nan files an application requesting only her survivor benefits at 62, which would be $1,590 (the amount is reduced from $2,000 since she is claiming early). She then at age 50 switches to her own retirement benefits of $2,232 per month.

For Strategy 1, Nan gets $1,260 from now until her FRAsurv, then gets $2,000 for the rest of her life. For Strategy 2, she gets $1,590 from now until age 70, then $2,230 for the rest of her life—more now and more later. So Strategy 2 provides the larger cumulative benefits no matter how long the widow lives. 

An important note: To follow Strategy 2, Nan must be clear with Social Security which benefits she is applying for and which she is not. She must specifically state that the initial application does not include an application for her own retirement benefits, only survivor benefits.

• The second comparison for Group 3 is based on whether your client’s retirement benefits at age 70 will be smaller than their maximum survivor benefits. If this is the case, then they should file for their own retirement benefits today and switch to survivor benefits at FRAsurv.

If the surviving spouse has already started claiming their own benefits

Those who fall into Groups 2 and 3 may face more complex choices because many people in this age range may have already started their own Social Security benefits.  

Let’s use the example of Gary. Gary, born in 1956, is 66 and 4 months old at the time of his wife’s death and he was already receiving a monthly Social Security benefit of $1,805. When his wife died, his survivor benefits were $2,100 per month.

Gary has two primary strategies to consider upon his wife’s death:

• Strategy 1:  Gary takes the survivor benefits of $2,100 per month, and he continues these benefits for the rest of his life.
• Strategy 2:  Gary suspends his retirement benefits and, instead, files for survivor benefits of $2,100 per month. At age 70, Gary switches back to his own retirement benefits, which have risen to $2,334 per month. This higher monthly amount reflects the benefits of delaying until 70, but because he took some of his benefit earlier, it is not as high as it could be.

Which of these strategies maximizes Gary’s income? Because his retirement benefits at age 70 are larger than the survivor benefits, he should adopt Strategy 2 to provide himself with extra income every month for the rest of his life.

Note that, in a handful of situations, it might make sense for Gary to take the survivor benefits now and pay back the personal retirement benefits he already received. Doing so would ensure he receives the maximum monthly amount when he switches to his personal benefits at age 70. But the cost of doing so would be prohibitive for all but a few individuals.

Conclusion

Making the most of your Social Security benefits means strategically coordinating your retirement benefits with potential survivor benefits to maximize your lifetime income.

For those who are 70 or older, the strategy is pretty straightforward: They should claim whichever benefit is higher, whether it’s their own or the survivor benefits. But for those who are between their full retirement age for survivor benefits (FRAsurv) and 70, there’s a bit more to consider. They should compare their maximum survivor benefits with their own maximum benefits. This will inform which benefit they should begin first and if they will have to make any benefit switch in the future.

For younger survivors, the approach is similar. They should also look at what their benefits would be at age 70 compared with their maximum survivor benefit. This informs which they should begin first and which they should switch to later.

It’s crucial to confirm eligibility and really understand the nuances of these claiming strategies. Make sure you are specific when applying to avoid any errors that could impact your future payments.