How Do Social Security Survivor Benefits Work?

Financial planning can feel a little strange sometimes. On one hand, you focus on your present life and the future you want to create. You save and invest to live comfortably and reach your goals. But there is another side to planning that is just as important, which is thinking about what happens if you are no longer around.

Insurance is the most obvious tool people use to protect their families’ financial interests, but it is not the only one. Social Security survivor benefits are another tool you can use. These benefits can help your surviving family members manage essential expenses and maintain financial stability.

This article will tell you everything you need to know about survivor benefits and Social Security so you can understand how they work.

What are Social Security survivor benefits?

Social Security survivor benefits are monthly payments to eligible family members of someone who worked and paid Social Security taxes during their lifetime. A part of every paycheck you contribute to Social Security helps fund benefits for your dependents in case something happens to you.

Now, who qualifies for survivor benefits?  

The eligibility list for the Social Security death benefit is quite broad. Families come in various forms, and the system, by and large, supports most family and dependent arrangements. Here’s who can claim the survivor benefits:

• Surviving spouses qualify, of course, but so do divorced spouses in many cases.
• Children can qualify, too, along with stepchildren, grandchildren, and even step-grandchildren in certain situations.
• In some cases, Social Security may extend survivor benefits to dependent parents as well.

How much do the Social Security survivor benefits pay?

The exact benefit you receive will differ based on your age and relationship to the deceased. Here are the guidelines and benefit limits for the same:

• A surviving spouse can receive the highest share of a deceased worker’s Social Security benefit. If the spouse claims benefits at full retirement age, they are eligible for 100% of the benefit the deceased worker would have received. Claiming earlier reduces the amount. For example, a widow or widower between the ages of 60 and full retirement age typically receives between 71.5% and 99%, depending on the exact age at which they claim.
• Widows and widowers aged 50 to 59 who are disabled may qualify for 71.5% of the deceased worker’s benefit.
• A surviving spouse caring for a child under age 16 receives 75%, regardless of the spouse’s age.
• Children also qualify for survivor benefits. A child under 18, or up to 19 if still in high school, can receive up to 75% of the deceased parent’s benefit.
• Benefits can continue into adulthood for children who became disabled before age 22.
• Dependent parents may qualify as well. If a parent is at least 62 and depended on the deceased worker for at least half of their financial support, they might be eligible for a survivor benefit. A single surviving parent generally receives 82.5%, while two surviving parents usually receive 75% each.

For surviving spouses, the Full Retirement Age (FRA) for survivor benefits differs slightly from the FRA used for retirement benefits. Here’s how this works:

• For those born from 1945 to 1956, the survivor FRA is 66.
• It gradually increases for people born from 1957 to 1962.
• Anyone born in 1962 or later reaches full survivor benefits at age 67.

Reduced survivor benefits are available as early as age 60, and as early as 50 if the surviving spouse is disabled. A spouse of any age can receive benefits if they are caring for the deceased worker’s child under 16 or a child with a disability who is receiving Social Security benefits.

Spouses or certain minor children may also receive a one-time death benefit of $255 from Social Security. It is important to apply for this one-time payment within two years of the deceased’s death. The payment is typically made to the surviving spouse. But if there is no eligible spouse, the children may still qualify. Children may be eligible if they are 17 years old or younger, or if they are between 18 and 19 and are enrolled full-time in a K–12 school. In case the children have developed a disability before age 22, there is no age limit imposed.

One important thing to know is that the amount each survivor receives is based entirely on the worker’s lifetime earnings. The more the person earned and contributed to Social Security, the higher the potential benefit for their family. As you work and pay Social Security taxes, you earn credits that count toward your future benefits. These same credits also determine whether your family can receive survivor benefits if something happens to you. You need to work for a maximum of 10 years to qualify for survivor benefits. So, even if your career was shorter than average, your loved ones may still qualify for support.

There is also a special rule you should be aware of. If you pass away while you still have young children, Social Security may be able to pay survivor benefits even if you have barely worked. Under this rule, if you worked for just one and a half years during the three years right before your death, your children and your spouse who is caring for them may still qualify for the Social Security death benefit.

How do you apply for Social Security survivor benefits?

If you were already receiving spousal benefits based on your partner’s work record, Social Security will generally switch you to survivor benefits once the death is reported. But if you were not receiving spousal benefits, you must submit an application.

A funeral home typically reports the death to the Social Security Administration (SSA). However, if no funeral home is involved or if the report is not filed for some reason, you should contact the SSA directly. You will need to provide the deceased person’s name, date of birth, Social Security number, and date of death.

To apply, you must call the Social Security Administration at +1 800-772-1213 to schedule an appointment. If you are deaf or hard of hearing, call TTY +1 800-325-0778. If you live outside the United States, you should contact the nearest Federal Benefits Unit. If the deceased was a U.S. citizen, you should also notify the closest U.S. embassy or consulate.

You may need several documents during the application process, depending on your relationship to the deceased. These may include:

• A marriage certificate
• A final divorce decree, if you are applying as a surviving divorced spouse
• Your birth certificate or other proof of birth
• Proof of U.S. citizenship
• Proof of the death of the deceased
• W-2 forms or tax returns

Once everything is set up, the Social Security death benefit works the same way as other Social Security benefits. You receive a monthly payment credited directly to your bank account. If multiple family members qualify, like a spouse and children, each person receives their percentage individually.

Are there any exemptions for survivor benefits for spouses?

If you are a surviving spouse, there are a few things you need to know. To start with the basic rule, you qualify for survivor benefits if you are at least 60 years old and were married to your spouse for at least nine months at the time of their death. This is the general framework. But there are some exemptions.

An exception applies when your spouse’s death was accidental or occurred while serving in the U.S. military. In these situations, the nine-month marriage requirement is waived entirely. It does not matter if you were married for years or even a few weeks. As long as the death meets that criteria, you are still eligible.

There is also an important rule for anyone caring for children from a marriage. If you are looking after a child who is under 16 or who has a qualifying disability, you can receive survivor benefits at any age. Another exception applies to widows or widowers with disabilities. If you are between the ages of 50 and 59, you can qualify for survivor benefits as long as your disability began within seven years of your spouse’s death.

The SSA also has special rules in place for remarriage. If you remarry before turning 60, you lose eligibility for survivor benefits tied to your late spouse’s record. But the rule does not apply if you have a disability. In that case, the age cutoff is 50. However, you regain eligibility if that later marriage ends through divorce, annulment, or death. If this happens, the survivor benefits tied to your first spouse can become available again.

On the other hand, if you remarry at age 60 or older, or 50 or older if you are disabled, your survivor benefits stay intact, and you can continue receiving them for the rest of your life. And yes, you may also qualify for spousal benefits based on your new spouse’s work record, too. You will not receive both at the same time, but you will have the option to choose whichever payout is higher.

What happens if you receive both Social Security and survivor benefits together?

This is one of the most common questions people have. You could lose a spouse and also qualify for your own Social Security retirement benefits. What happens then?

Well, you can’t receive both benefits in full at once. Instead, you are allowed to receive whichever benefit is higher. But you can switch between the two strategically to increase the total amount you receive over your lifetime. So, you can claim one benefit first and then switch to the other later.

Survivor benefits are available as early as age 60. If you are disabled, you can start at 50. These benefits grow only until your full retirement age, which for most people today falls between 66 and 67. Once you reach that age, the Social Security death benefit reaches its maximum value.

Your own Social Security retirement benefit works differently. You can start it at age 62, but you will receive a reduced amount if you choose to start that early. The longer you wait, the larger your benefit grows. Your retirement benefit reaches its maximum amount at age 70. After that, there is no scope for further growth.

It may help to talk to a financial advisor or call Social Security directly to understand how this works and applies to your situation.

Understanding survivor benefits and your next steps

Survivor benefits and Social Security can together help several families. The system is designed to make sure you are not left without financial support. Even when things do not go as planned, these benefits can help you maintain financial stability.

But to really make the most of what is available, you need to understand how the rules work. And since Social Security rules can change over time, it is also essential to stay up to date. Talking to a financial advisor can make the process much easier. Explore our financial advisor directory to connect with a professional who can guide you through the process of claiming survivor benefits.

Frequently Asked Questions (FAQs) about Survivor benefits and Social Security

1. What is the Social Security survivor benefit?

A Social Security survivor benefit is a monthly payment made to certain family members after someone who paid into Social Security passes away.

2. How do I know if I qualify for the Social Security death benefit?

You may qualify if you are a surviving spouse, and in many cases, even a divorced spouse can be eligible. Children also qualify, including biological children, stepchildren, grandchildren, and in some situations, step-grandchildren. Dependent parents can receive survivor benefits, too.

It is best to speak with a financial advisor who can review your situation and confirm exactly whether you qualify and what you are entitled to.

3. Can Social Security survivor benefits alone cover all my financial needs?

For most people, survivor benefits alone may not be enough to cover all their needs. It may be more beneficial to pair them with other retirement financial tools, such as a 401(k), an Individual Retirement Account (IRA), and even life insurance.

4. Are Social Security survivor benefits taxed?

They can be, depending on your income. Survivor benefits may be partially taxable at the federal level if your combined income crosses certain thresholds. Depending on your filing status and total earnings, up to 85% of your survivor benefits may be considered taxable income. While most states do not tax Social Security benefits, a handful do. These include:

• Minnesota
• Utah
• Vermont
• Connecticut
• Colorado
• Montana
• New Mexico
• Rhode Island
• West Virginia

For further information on creating a suitable retirement plan for your unique financial requirements, visit Dash Investments or email me directly at dash@dashinvestments.com.

About Dash Investments

Dash Investments is privately owned by Jonathan Dash and is an independent investment advisory firm, managing private client accounts for individuals and families across America. As a Registered Investment Advisor (RIA) firm with the SEC, they are fiduciaries who put clients’ interests ahead of everything else.

Dash Investments offers a full range of investment advisory and financial services, which are tailored to each client’s unique needs providing institutional-caliber money management services that are based upon a solid, proven research approach. Additionally, each client receives comprehensive financial planning to ensure they are moving toward their financial goals.

CEO & Chief Investment Officer Jonathan Dash has been covered in major business publications such as Barron’s, The Wall Street Journal, and The New York Times as a leader in the investment industry with a track record of creating value for his firm’s clients.