Social Security Survivor Benefits
In addition to retirement income, Social Security offers disability and survivors benefits to qualified individuals. A worker’s spouse, children, and parents may be eligible for these if you pass away. The process of obtaining these survivors benefits may differ, though, based on whether or not you are/were already receiving Social Security.
Social Security survivors benefits can be significant to dependents who rely on a worker’s income for support. These individuals may include young children, spouses, parents needing assistance, or even an ex-spouse who has not remarried.
Type(s) of Survivors Benefits Offered Through Social Security
Social Security offers monthly income to qualified family members if an eligible worker passes away. These payments can continue until the recipient(s) are eligible for Social Security retirement income benefits. In addition to survivors’ income benefits, Social Security can make a one-time payment of $255 to a surviving spouse. This may depend on whether or not the surviving spouse and the deceased worker were living together at the time of the worker’s death. If there is no surviving spouse, this one-time payment of $255 from Social Security may instead be made to a child eligible for benefits on the deceased worker’s record in the month of their death.
How the Amount of Social Security Survivors Benefits is Determined
Who is Eligible for Social Security Survivors’ Income?
Certain family members may be eligible for Social Security survivors’ income benefits. These can include:
– A widow(er) who is at least age 60 (or who is at least 50 years old and disabled)
– Widow(ers) of any age and caring for the deceased’s child(ren) who are either under the age of 16 or are disabled
– Unmarried child(ren) of the deceased who is/are either under age 18 (or 19 if they are a full-time elementary or secondary school student) or who are age 18 or over with a disability that started before the child was age 22
– Stepchild(ren)
– Grandchild(ren)
– Step-grandchild(ren)
– Adopted child(ren)
– Parent(s) who are aged 62 or over and were dependent on the deceased worker for at least ½ of their financial support
– A surviving divorced spouse (provided that certain criteria have been met)
If a surviving widow(er) remarries after age 60 (or age 50 if they are disabled), the marriage will not impact their eligibility for Social Security survivors benefits.
Other Factors to Consider Regarding Survivors Benefits from Social Security
In addition to meeting the qualification criteria to receive Social Security survivors benefits, other essential factors must be considered. For instance, if the deceased worker was receiving Social Security retirement or disability benefits, the sum received for the month of their death (and for any later months) must be returned to the Social Security Administration (SSA). For example, if a worker passes away in June, then the Social Security benefit paid for the month of July must be returned to the SSA. If these funds were received by check—but have not yet been deposited into the worker’s bank account—the check must be returned. If the deceased’s bank received the Social Security retirement or disability income benefit via automatic deposit, the bank must be contacted so that these funds may be returned to Social Security.
How to Apply for Social Security Survivors Benefits
It is essential to let the SSA know as soon as possible if a loved one passes away. Often, the funeral director from the mortuary will report a person’s death to the SSA as part of their services.
You can apply for survivors benefits through Social Security by visiting the SSA’s website at https://socialsecurity.gov.
If you have any questions regarding the process of applying for Social Security survivors benefits, there are several ways to contact the SSA. These include:
– Going to their website at https://socialsecurity.gov
– Calling them directly at (800) 772-1213 (This line is open Monday through Friday from 8:00 a.m. until 7:00 p.m.)
– Visiting your local SSA’s office (It is recommended that you call ahead and schedule an appointment to reduce waiting time, as well as to inquire about any precautions being taken regarding COVID-19 and social distancing).
If an individual is already receiving spousal Social Security retirement benefits, the income will automatically convert to a survivors benefit when the SSA gets the report of the worker’s death. However, if the dollar amount of the retirement benefit is higher, that amount will continue to be received.
Filling in the Income “Gap”
While Social Security can provide ongoing income, it may not be enough to cover all the survivors’ expenses. With that in mind, other income generators may have to be set up. One way to ensure that income will continue to flow in for the remainder of a recipient’s lifetime is to purchase an annuity. Annuities are designed to generate a regular, ongoing income stream for a preset period—such as ten or twenty years—or even for life. The amount of income that is generated from an annuity can depend on several factors, such as:
– Age of the income recipient
– Amount of money in the annuity contract
– Length of time the income is received
– Type of annuity
Fixed annuities and fixed indexed annuities can pay out a known dollar amount, regardless of what happens in the stock market or with interest rates. Variable annuities can also pay an income stream. However, often, the dollar amount of the payment can change based on the performance of the stock market and the underlying investments in the annuity.
If you do not need income right away, an annuity can still be funded, knowing that a payout can begin at a point in the future. These “deferred” annuities provide several benefits while the funds are in the account.
For instance, money inside of an annuity is allowed to grow tax-deferred. This means there is no tax on the gain until the withdrawal time. So, the account value may grow and compound over time.
Because all annuities can differ, it is recommended that you discuss your potential income needs with a retirement income specialist who can point you in the right direction based on your specific goals and needs.
Making Sure All of Your Income is Coordinated and Maximized
Sources
How Social Security Can Help You When a Family Member Dies. Social Security Administration. https://ssa.gov/pubs/EN-05-10008.pdf Survivors Benefits. Social Security. https://ssa.gov/benefits/survivors/
