Social Security benefits were originally designed to provide economic relief to retirees. Congress has expanded the benefit in many ways over the years, but with each adjustment the complexity has increased. Below, I have briefly detailed five benefits that might be available when a spouse or parent passes away.
- Surviving Spouse Benefits. When one partner in a married couple passes away, the surviving spouse can receive a benefit that can exceed $2,000 a month starting at the age of 60.
- Surviving Spouse with Minor Children Benefits. If a married couple has a child, and one parent passes away, the surviving spouse can receive a benefit that may exceed $2,000 a month until their youngest child turns 16.
- Children’s Benefit. A child of a deceased parent may be entitled to 75% of their deceased parents full retirement benefit, which most people would receive at age 67. This benefit can exceed $2,000 a month and generally lasts until the child turns 18.
- Children of Older Parents Benefit. If a parent turns 70 years old before their child reaches the age of 18, the child receives what is essentially a survivor benefit until they turn 18.
- Divorced Spouse Benefit. If you were married for at least 10 years and then filed for divorce, you would typically get the Social Security benefit that you earn during your working career based on your compensation. However, if the spouse you divorced were to predecease you and their Social Security benefit was greater than the benefit you were receiving, you would be eligible to get a step up in benefit equal to that of your ex-spouse. Receiving this benefit in no way affects the benefits the new spouse of your ex-spouse will receive.
Social Security benefits can be complicated, but our hope is to create awareness about the benefits you may be entitled to and to encourage you to reach out to your investment advisor and the Social Security Administration for further information.
Written by:
Steve Chaney
President-Chaney Capital Management
