To follow up on my recent column about how to receive spousal benefits based on an ex-spouse’s earnings record, today we’ll take a look at what happens when your ex-spouse dies. Once you’ve begun receiving the spousal benefit, that benefit will continue for the rest of your life, or until one of the following occurs:
*Remarriage will not cause spousal benefits to cease if you marry someone who is currently receiving spousal benefits, mother’s or father’s benefits, survivor benefits, or disabled child benefits. If you remarry your ex-spouse and he or she has not already started receiving benefits, your spousal benefit will cease until such time as your new (old) spouse begins receiving retirement benefits. The last item in the list above is what we’re covering today, the case of your ex-spouse dying while you are collecting spousal benefits based on your ex-spouse’s earnings. As indicated, upon the death of your ex-spouse, the spousal benefit will stop. If you are entitled to a retirement benefit based on your own earnings record (this would be an amount less than the spousal benefit), that amount of the retirement benefit will continue for you. Even though the spousal benefit will cease upon the death of your ex-spouse, upon his or her death you become eligible for a new benefit called a survivor benefit (in SSA parlance, a widow’s or widower’s benefit). This survivor benefit is equal to the retirement benefit that your ex-spouse was receiving at the time of his or her death (with some exceptions, but that’s another column). Let’s review an example: Don and Teresa were married for 20 years, and have been divorced for over 10 years. Teresa was the breadwinner of the couple, while Don pursued his passion for music, but just never got that big break. When the two reached age 62 within a few months of one another, Don, who never remarried, was eager to file for Social Security benefits. He is eligible to receive a spousal benefit based on Teresa’s quite significant earnings record. At a maximum Don could receive $1,250 in spousal benefits. Read more Social Security coverage on MarketWatch Since Don started receiving benefits at age 62, there is a reduction. Don began receiving $875 per month based on Teresa’s earnings record. Sadly, six months after Don started receiving spousal benefits, Teresa died. Upon Teresa’s death, Don will lose his spousal benefit; but he becomes eligible for a survivor’s benefit based on Teresa’s record. Teresa had not yet begun to receive her own retirement benefit, so Don is eligible for a maximum of $2,500 a month in survivor benefits. Once again, since Don is younger than the full retirement age, there would be a reduction in benefits if he chose to start receiving the survivor benefit at his current age of 62 years and 6 months. However, if Don were to delay until his full retirement age, he could be eligible to receive the full $2,500 benefit. Since Don’s own retirement benefit (based on his own earnings record, and reduced due to his early filing age) amounts to $500 per month, Don could continue receiving $500 per month and delay for a while (up to his full retirement age) before applying to receive the survivor benefit. On the other hand, he could file immediately for the survivor benefit, which would also be reduced since Don is younger than full retirement age. If he chooses to file for the survivor benefit right away at his age of 62 years and 6 months, Don will be entitled to a reduced monthly benefit in the amount of roughly $2,062. This benefit would not change over time, other than the annual COLAs when applicable, or if Don were to become eligible for a different benefit at some point in the future. If delaying is the choice, Don could continue receiving his $500 monthly benefit based on his own earnings record, and then later switch over to the survivor benefit. He can switch over at any time and each month that he delays will result in an increase to the survivor benefit, up to his full retirement age. Readers: Do you have a question about Social Security? Email us at As you approach retirement, you may find that your ideal life no longer includes your current spouse. You're not alone. According to the U.S. Census Bureau, the percentage of people who have been divorced is highest among those ages 55 to 64. It may seem callous, but it might be wise for you to pause those plans to end your marriage — because you may receive significant financial benefit for doing so. You may be able to claim Social Security retirement benefits on your ex-spouse's work record. But the timing of the divorce itself could be all-important, according to financial planning experts. More
from Personal Finance: The catch is that divorced people have access to former spouses' benefits only if they'd been married 10 years or longer, according to David Freitag, a financial planning consultant and Social Security expert at MassMutual. "That is a huge, huge benefit," he said. Yet some people are not aware of this wrinkle. Indeed, a MassMutual poll conducted last year found that 30% of individuals did not know a divorced person may potentially collect Social Security benefits on their ex-spouse's earnings history. Why the 10-year mark is so importantFor couples planning a divorce, the 10-year Social Security rule can make a huge difference. While giving a presentation on Social Security, Freitag met a woman who had just divorced after she had been married for nine years and six months. "Had she waited six months, she would have had access to a substantial spousal benefit from her ex-husband," Freitag said.  Claiming benefits on your ex-spouse triggers what is known as a spousal benefit, which is worth a maximum of 50% of the retirement benefit. In 2022, the maximum monthly Social Security retirement benefit is $3,345 per month for those who retire at full retirement age. The difference between half of that — around $1,672 per month — and zero can be incentive enough for some couples in unhappy marriages to stick it out until they reach that 10th year anniversary, said Davon Barrett, a lead advisor and certified financial planner at Francis Financial, a New York-based wealth management firm specializing in divorce planning. Barrett has advised clients who are going through a divorce that they may be able to take their retirement benefit on their own work record or half of their spouse's, whichever is higher. "That does provide a little bit of a safety net in some people's minds," he said.
Those benefits are also available to same-sex couples, provided they have been married for 10 years or longer, Freitag noted. What's more, if you're claiming on your ex-spouse and they remarry, you can still claim these benefits. But if you remarry, it generally disqualifies you from claiming on your living ex-spouse's record. You must also be age 62 or over and entitled to receive either retirement or disability benefits, according to the Social Security Administration. To be sure, other rules may also apply depending on your personal circumstances. To determine if you qualify, it's best to contact the Social Security Administration. What happens if your ex-spouse diesIf your ex-spouse dies, you may qualify for what's known as a death benefit, which is worth up to 100% of the monthly checks they received. Again, the 10-year marriage rule applies in this case. "Someday in the future, should your ex-spouse die, there may very well be access to a significant benefit for the rest of your life," Freitag said. Certain other rules must also be met here, as well. For example, if you remarry after age 60 that will not affect your eligibility for survivor benefits on your ex-spouse's record. Notably, if you qualify for these strategies, it's best to assume that you will have to bring it to the attention of the Social Security Administration. "When there's this much money potentially available, I think you have to be your own advocate," Freitag said. |
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