I am 20 years older than my 53 year old wife. If she files for Social Security early will it affect her widow’s benefit?

By Alessandro Malito

“Her own benefits are lower than what she would receive under my benefits”

Dear MarketWatch,

I am 72 years old and have postponed collecting Social Security until I am 70 to increase my benefits. I have remarried and my new wife is 53.

If she starts receiving reduced spousal benefits before reaching full retirement age, will that affect the amount she receives as a widow under the two scenarios: 1) waiting until she reaches FRA or 2) starting widow’s benefits before she reaches FRA? Will her widow’s benefit be reduced twice under the second scenario?

Note: Her own benefits are less than what she would receive under my benefits.

Planning ahead

Related: My 75-year-old husband doesn’t qualify for Social Security. How is that possible? Is he entitled to my spousal benefits?

Dear Planner,

Your decision to wait until age 70 to claim benefits has increased not only your personal benefits but also the amount your wife will receive under survivors’ benefits. So in that respect, she is already better off than she would otherwise be.

The rules for Social Security benefits—whether they apply to an individual, spouse, or survivor—can be confusing, so please bear with me as I explain them.

Surviving spouses can receive up to 100% of their spouse’s benefits, which includes deferred payments — the extra money you get because you waited until age 70 to claim benefits.

Surviving spouses can receive up to 100% of the benefits left by the deceased person.

What your wife will receive as a survivor depends on how old she is when she starts claiming benefits. For example, if she is at or above her retirement age, she will receive the maximum amount she is entitled to.

If she is 60 or older but has not yet reached full retirement age, she will receive between 71% and 99% of your benefits. (There are other scenarios, such as when a surviving spouse is caring for a child under 16.)

If she had filed before her FRA and you were still alive, she would have received a lower amount – whether it was her own benefits or her spousal benefits.

Married couples, unlike survivors, are entitled to a maximum of 50% of what the other partner would have received at full retirement age, so your delayed payments are of no help to her.

If she is eligible for her own benefits or spousal benefits, the Social Security Administration will determine which of the two benefits is higher and award her that benefit (not a combination of the two).

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If you are already receiving spousal benefits, the agency will automatically transfer them to survivors’ benefits upon your death.

If she was also receiving Social Security benefits at the time of your death, she will need to call or visit a Social Security Administration office to apply for survivor benefits.

There is one other instance where she could see her benefits reduced, at least temporarily, and that is if she continues to work while receiving those benefits. Social Security has an earnings limit for people who do not reach full retirement age, regardless of the type of benefit they receive. Recipients will eventually get that money back.

More information about Social Security Administration survivors’ benefits can be found here.

When discussing Social Security benefits with your wife, you should also consider opening online accounts with the Social Security Administration if you haven’t already. That way, you can review personal information and earnings history and prevent fraud before an account is created in your name.

It’s also a great time to better plan for your wife’s future. It sounds like you’ve already done some smart financial planning, considering you’ve delayed taking Social Security until you’re 70.

This is a good time to start planning for her and your future years.

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Have a question about your retirement savings? Email us at [email protected]

-Alessandra Malito

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09-18-24 2151ET