SS Survivor Benefits

[md75241287]

From what I’ve read it’s my understanding if I claim a SS Survivors benefit the amount is based on a percentage of my spouse’s SS benefit at age 67 (FRA).  If I claim the benefit at age 60 it would be approximately 70% of my spouse’s FRA benefit. If I wait until I’m 61 the percentage would increase. This will continue until I reach my FRA.  My question is as I wait to claim a SS survivors benefit will my spouse’s FRA benefit increase every year based on SS COLA? 

[DaveT443064]

The answer from Gail is mostly right but missing one thing that could actually matter for your planning.

Your spouse's FRA benefit does not increase as you wait to claim. The base amount is locked at what your spouse was receiving or would have received. COLA increases do apply every year regardless of when you claim, so the benefit is not frozen in dollar terms, it just does not grow because you are waiting.

The part worth knowing: survivor benefits are one of the few areas in Social Security where you have real sequencing flexibility. Survivor and your own retirement benefit are treated separately. So you have two options depending on your own earnings history.

Option A: Claim survivor at 60 at the reduced rate, let your own retirement benefit grow to 70, then switch to your own if it ends up higher.

Option B: Claim your own retirement benefit early, then switch to the full survivor benefit at your FRA.

Which one wins depends entirely on the size of your own PIA versus your spouse's benefit. A lot of people default to one without ever running the comparison and leave money on the table for the rest of their life.

The 71.5% at 60 versus 100% at FRA gap is significant over a long retirement. Worth doing the math before you file anything.
Let me know if you have any questions, happy to help. 

[GailL1]

@md75241287 

NO - Survivors Benefits do not increase as you age other than the normal COLA if we get one.  

If you claim your Survivors Benefits EARLIER than your FRA, then it is permanently reduced by the % reduction at the time you do claim it.  

If you wait til your FRA to claim your Survivors Benefits then you get what your spouse (or X-spouse) was getting when they died.  Filing at an earlier age than FRA will give you a reduced amount. -

There is special considerations given to those surviving spouses that are still caring for minor children and for those surviving spouses that have been deemed disable before the death of their spouse.

SSA.gov - Survivors Benefits Publication 

[cat0w]

@md75241287 

Have you looked at the SS website to see what you can find about this? 

The United States Social Security Administration

Have you visited a SS office near you to ask this question?

SS offices in the United States.