I'm 20 years older than my wife, who is 53. If she claims Social Security early, will it affect her widow's benefit?

By Alessandra Malito

'Her own benefits are lower than what she would get under my benefits'

Dear MarketWatch,

I am 72 and delayed getting Social Security benefits until I was 70 to increase the benefits. I have remarried, and my new wife is 53.

If she starts receiving reduced spousal benefits before reaching her full retirement age, would that affect how much she will receive as a widow under two scenarios: 1) waiting to reach FRA or 2) starting widow benefits before reaching FRA? Will her benefit as a widow be reduced twice under the second scenario?

Note: Her own benefits are lower than what she would get under my benefits.

Planning Ahead

Related: My husband, 75, is not eligible for Social Security. How is this possible? Is he entitled to my spousal benefits?

Dear Planning,

Your decision to wait until age 70 to claim benefits increased not only your personal benefits, but also the amount your wife will get in survivor benefits. So in that regard, she's already better off than she would have been.

The rules around Social Security benefits - whether for a person's own benefits or those of a spouse or survivor - can be convoluted, so bear with me as I break things down.

Surviving spouses can get up to 100% of the benefits of the person who died, which includes delayed credits - that is, the extra money you're getting because you waited until age 70 to claim your benefits.

Surviving spouses can get up to 100% of the benefits of the person who died.

What your wife would get as a survivor depends on how old she is when she begins claiming. For example, if she's at her own full retirement age or older, she'd get the maximum she's eligible to receive.

If she's 60 or older but not yet at her full retirement age, she would get between 71% and 99% of your benefits. (There are other scenarios, too, such as if a surviving spouse is caring for a child younger than 16.)

If she were to claim before her own FRA and while you were still alive, she would get a reduced amount - whether that is her own benefits or spousal benefits.

Spouses, unlike survivors, are only eligible for a maximum of 50% of what the other partner would get at his or her full retirement age, so your delayed credits don't help her here.

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

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If she is already receiving spousal benefits, the agency will automatically switch her to survivor benefits after your death.

If she is already receiving Social Security on her own record when you pass away, she would have to call or visit a Social Security Administration office to claim survivor benefits.

There's another instance in which she may see reduced benefits, at least temporarily, and that is if she is still working while receiving those benefits. Social Security has an earnings limit for people before they reach full retirement age, regardless of the type of benefit they receive. Beneficiaries will eventually get that money back.

You can find more information about survivor benefits from the Social Security Administration here.

As you discuss Social Security benefits with your wife, you should also consider opening online accounts with the Social Security Administration, if you haven't done so already. That way you can review personal information and earnings history, as well as prevent scammers from creating an account on your behalf.

Now is also a great time to get more planning done for your wife's future. You seem to have already done some smart financial planning, given that you delayed claiming Social Security benefits until you turned 70.

Now is a good time to start making plans for her - and your own - later years.

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Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

-Alessandra Malito

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09-21-24 1048ET

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