Survivors are eligible for benefits from Social Security as long as the deceased family member had 40 Social Security credits at the time of death (known as “fully insured”), or had 6 credits during the last 13 quarters prior to death (known as “currently insured”). The Social Security Administration will be able to determine whether the family member was fully insured or currently insured. 

The following table illustrates who may be eligible to receive survivor's benefits and under what conditions: 

 What benefits will your survivors receive after you die?

Surviving family members will receive a monthly benefit based on the earnings history of the family member who died, unless the survivor is eligible for a greater benefit based on his or her own earnings history. Survivor's benefits are expressed as a percentage of the benefit the deceased family member earned: 

Survivor's benefits may be reduced for one or more of the following reasons:

The survivor's earnings are more than the annual exempt amount

Benefits may be reduced when a surviving spouse's earned income exceeds the annual earnings exempt amount and the surviving spouse has not yet reached normal retirement age. Currently the exempt amount is $14,160.  Benefits are reduced by $1 for ever $2 earned over this limit.

Beneficiary is younger than normal retirement age when he or she elects to receive benefits

This factor affects the surviving spouse or the surviving divorced spouse of the worker. If the surviving spouse elects to receive benefits early (as early as age 60 or age 50 if disabled), the benefit payable will be reduced by .475 percent for each month between the month benefits begin and the month in which the spouse will reach normal retirement age.

Benefit is subject to the family maximum

Survivor's benefits may also be reduced if they exceed the family maximum benefit. This commonly happens when benefits to children are payable along with a benefit to a surviving spouse. Because the family maximum benefit generally ranges from 150 to 180 percent of the deceased family member’s benefit, a spouse's benefit combined with the benefits for two children could easily exceed the family maximum. In this case, the benefit for each family member will be reduced accordingly.

Benefits to eligible family members end when:

Please remember that due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Hatton Consulting, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request. Some content provided by Forefield Inc. Forefield Inc. does not provide legal, tax, or investment advice. All content provided by Forefield is protected by copyright. Forefield is not responsible for any modifications made to its materials, or for the accuracy of information provided by other sources.

---