We work and pay into Social Security while we’re working, but what happens to our benefits when we die? They aren’t always lost.
Surviving family members may qualify to receive a portion of those benefits. These monthly payments are called Survivor Benefits, but there are rules for who can receive them and how much they’ll get. For many, this is a way to supplement their income .
There are several misconceptions about Social Security Survivor Benefits. We’ve busted some of the most common myths.
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Some people believe that when their spouse dies, their
Social Security benefits die with them, but that’s not usually the case. Eligible surviving spouses and dependents are entitled to a percentage of the deceased worker’s benefit amount.
The amount surviving family members receive depends on several factors, including the deceased’s work history and the number of family members who are eligible.
Social Security Survivor Benefits are sent monthly, and eligible family members might also qualify for a Social Security Lump Sum Death Payment (LSDP) of $255. Surviving family members must apply for this payment within two years of the deceased’s death.
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1. Myth: Children never qualify for benefits
Unmarried children aged 17 and younger typically qualify for Survivor Benefits. In some cases, grandchildren and stepchildren may also qualify. However, certain criteria must be met. Form SSA-4 includes important information on how to apply for benefits for children.
Children can receive up to 75% of the deceased worker’s benefit amount. The exact percentage may be lower, depending on the number of family members who qualify. Payment amounts might be limited when there are several surviving dependents. That’s because payments are limited to the family maximum, which is generally between 150% and 188% of the deceased worker's benefit.
2. Myth: You can’t get Survivor Benefits if you’re divorced
Many surviving divorced spouses qualify for Survivor Benefits. With no children, divorced spouses must be at least 60 years old (at least 50 if you have a disability), and you must have been married for at least 10 years.
However, if you are the caregiver of a child 16 or younger (or of an eligible older dependent who has a disability), you may qualify for benefits, regardless of your age or how long you were married. To qualify, the child must be the legal child of you and your deceased ex-spouse.
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3. Myth: Parents can never qualify for benefits
Some surviving parents qualify for a percentage of their deceased child’s worker benefits. However, to qualify parents must be at least 62 years old, and their child must have provided at least half of their support.
4. Myth: Survivor Benefits stop when a child turns 18
In some circumstances, surviving children can continue receiving Survivor Benefits once they turn 18. Children may receive benefits at 18 and 19 years old if they are a full-time student in grade 12 or below. College and trade-school students do not qualify for this age exception.
Children who were diagnosed with a disability before the age of 22 may continue receiving Survivor Benefits after they turn 18. Surviving children with disabilities do not need to be full-time students to receive benefits.
5. Myth: You can never get Survivor Benefits if you remarry
Not everyone who remarries loses their deceased spouse’s benefits. If you are 60 or older, remarrying will not cause you to lose your share of your ex-spouse’s worker’s benefits. If you are disabled, you may still qualify for Survivor Benefits if you remarry at age 50 or older.
Widows and widowers can only collect Survivor Benefits from one deceased spouse at a time. So, you will not qualify for a double payment if your subsequent spouse dies. However, your Survivor Benefit amount may be based on both deceased spouses’ work records.
Make Money: 8 things to do if you're barely scraping by financially 6. Myth: Your earnings never affect benefits
Your Survivor Benefit amount may change if your income changes before you reach full retirement age. The full retirement age is 67 for survivors born in 1960 or later. If you haven’t yet reached full retirement age, the Social Security Administration will deduct $1 from every $2 you earn above the limit, which is currently $22,320.
Your income will not cause you to lose Survivor Benefits completely, and not all income counts for the purpose of determining your monthly benefit amount. Income earned from capital gains, investments, and interest do not count. Neither do other government benefits. Income from wages, net earnings from self-employment income, and employer contributions to retirement plans do count.
Bottom line
The worker’s benefit amount is based on their earnings while they were alive. Generally, the more you earn, the higher your benefit, and the more your loved ones will receive in Survivor Benefits. The Social Security Administration website has tools for estimating Survivor Benefits.
You cannot apply for Survivor Benefits online. You should contact the Social Security Administration to set up an appointment. The Administration will ask you to provide information about yourself, including your recent work history and past and current marriages. They will also ask you about eligible children and for your bank information to set up direct deposit.
You may need to go to the local office in person, but some appointments are done over the phone. It’s not typically necessary to apply for Survivor Benefits if you are already receiving Family benefits. The amount and type of benefits are generally updated automatically.
While the loss of a spouse or parent can be devastating, Survivor Benefits may help pay the bills until you become eligible for your own Social Security benefits .
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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