Social Security Survivor Benefits

Survivor benefits are MUCH different than Spousal benefits and it's up to YOU to understand the difference.  In this video, we bring back Jane and Bob except this time Bob has died.  What is Jane's benefit? Well it depends on when Bob filed for his benefit.  If Bob filed BEFORE his FRA Jane's benefit will be 82.5% of Bob's PIA, or the amount Bob was receiving when Jane died.  Of course, if Jane was receiving more in benefits than Bob, than Jane will receive nothing from Bob's benefit.  That benefit is gone.  If Bob delayed taking his benefit and earned Delayed Earnings Credits (DEC) of 8% a year, then Jane will receive whatever Bob was receiving at his death.  In this case, Bob could have nearly $3700 a month in Social Security benefits if he waited until 70 before filing.  That will be the benefit Jane would receive upon his death.  So, there is some serious planning that needs to be done here to maximize benefits.  If Bob is concerned with leaving Jane a decent retirement benefit upon his death, he should delay taking Social Security until he is 70.  This would be a wonderful insurance policy for Jane, as she can live on that nearly $3700 a month for the rest of her life.  However, say Jane is most likely to pre-decease Bob.  Should she wait until 70 to file for her benefit? NO!  Because when Jane dies, her benefit is lost.  Bob will receive no benefit whatosever from Jane.  If Jane dies before receiving any benefit, Bob receives nothing. So, for a lower-earning spouse, who is not in good shape, it makes sense to file for Social Security benefit as soon as possible in order to make sure you receive something.  For a healthier recipient, it would be ideal to defer taking benefits to earn Delayed Earnings Credits.   If the higher earner is in not in good health, it ALSO makes sense for that person to defer taking as late as possible in order to leave a large benefit to the surviving spouse.  Clear as mud, right??? Don't forget these benefits also apply to divorcees, with some caveats.  So, again, understand all the nuances before making any decisions on when to claim your benefits.  https://joshscandlen.com/social-security-spousal-benefits-vs-survivor-benefits/ https://joshscandlen.com/survivor-benefits-what-is-your-benefit-when-your-spouse-filed-early/ https://www.ssa.gov/planners/survivors/ifyou.html https://www.ssa.gov/history/reports/gs18h.html https://socialsecurityintelligence.com/social-security-survivor-benefits-and-death/