Understanding Social Security survivor benefits
I'd like to share a recent story about Social Security survivor benefits, how potentially valuable they are and how many people don't know such benefits even exist.
My mom recently met a retired single woman in her mid-60s who divorced from her ex-husband years ago. The ex-husband has since deceased.
The woman lives on a very tight budget by living off savings while delaying her Social Security benefit. She ideally wants to delay her benefit until 70, but is at least shooting for her Full Retirement Age, in a couple years, as the starting point.
My mom is fairly well-versed in Social Security after doing her own personal deep dive into it about five years ago. In fact, it was her and her personal Social Security situation that got me on the path to changing my own career and starting up my retirement planning business, Tenon Financial, and this newsletter. Thanks Mom!
Anyway, when the woman said to my mother how she's waiting to start Social Security and living very frugally in the meantime, my mother mentioned to her that she believes the woman would be entitled to get a divorced survivor benefit off the Social Security record of her deceased ex-spouse. The woman had no idea what my mom was talking about.
This was a couple of weeks ago. My mom immediately called me up, and I confirmed the woman would indeed be able to get a divorced survivor benefit now while she's delaying her own Social Security for a few more years. AND, there is essentially no downside to her starting the divorced survivor benefit now...it's money she'd be leaving on the table by NOT starting it ASAP.
Right after that conversation, the woman went home and called up the Social Security Administration. Sure enough, they confirmed what we discussed. Her divorced survivor benefit will be starting next month.
I don't want to go so far as to say this information was life-changing for the woman. But she said her budget was such that every few dollars really matters. Although I don't know how much survivor benefit the woman will actually be getting, she told my mom she's absolutely elated at the money she'll be receiving and that it will make a HUGE difference in her life and finances while she continues to delay her own Social Security.
What’s the moral of the story??? Whether you love or hate the Social Security system, it's tremendously valuable to lots of people. And, there are a lot of little nuanced benefits that many people aren't aware of. As such, lots of people miss out on potential benefits by not knowing the full range of what they're entitled to.
In this case, the benefit is the ability to get a "survivor" benefit off a deceased ex-spouse. Assuming your marriage lasted at least 10 years and you're over 60, you’re entitled to get survivor benefits off your deceased ex. AND, you can claim those benefits while not impacting your own benefit, which you can let sit untouched so it can continue to grow until as late as age 70. Additionally, even if you remarry, so long as you wait until 60 or later to remarry, you are still entitled to receive the survivor benefit off your deceased ex-spouse.
Keep this story and information in mind in case this situation applies to you or anyone you know.