Social Security Survivor Benefits

The death of a family member is incredibly difficult. If the decedent contributed to the family’s finances, the situation can be even more stressful.

This article provides information about Social Security Survivor Benefits for the surviving spouse and dependents. This information can then serve as a starting point for reviewing the overall financial picture to determine if any gaps remain between survivor needs and what will be available if there is a death of a working spouse.

Eligibility for Social Security survivor benefits

You must be either “currently insured” or “fully insured” by Social Security for family members to receive Social Security survivor benefits when you die. See the chart below for a summary of key information:

Lump-sum death benefit³

The Social Security Lump-Sum Death Benefit is a one-time payment of $255 that is paid to the surviving spouse or, in some cases, to a child of the deceased worker who was either fully or currently insured under Social Security. To be eligible the surviving spouse must have been living with the deceased worker at the time of death, or if the worker and the spouse were living apart, the spouse was already receiving benefits on the deceased worker’s record or became eligible to receive survivor benefits at the worker’s death.

If there is no surviving spouse to receive the death benefit, the benefit is paid to a child or children eligible to receive benefits on the worker’s record. If there is more than one eligible child, the death benefit is split evenly between the children.

Eligibility for monthly benefits

Now let’s further break down the conditions that various family members must meet to receive benefits and the amounts that they could receive. See the chart⁴ that follows:

Maximum family benefits⁴

There is a maximum family benefit rule which ensures the total amount paid to a family on a deceased worker’s record does not exceed a certain amount. The limit typically ranges from 150% to 180% of the deceased worker’s Social Security benefit amount. If the total benefits for eligible family members exceed the maximum amount, then each family members’ benefit will be proportionately reduced to stay within the limit.

Important things to know⁴

If you are eligible for survivor benefits, you should apply promptly because, for some types of claims, benefits are paid from the time of application and not from the time the worker died. An application can be made by telephone or in person at any Social Security office, but not online.

It is also important to know that if you are covered by a pension for work not covered by Social Security, then survivor benefits may be reduced by the Government Pension Offset rules.⁶ This is similar to reductions of your own Social Security benefits from the Windfall Elimination Provision (WEP), which is a formula that effectively reduces Social Security retirement and disability benefits for certain retirees who receive a pension for work not covered by Social Security, in addition to their Social Security payments.

If you are a surviving spouse, you may want to be strategic about claiming a survivor benefit. For example, if your spouse earned significantly more than you, you may want to consider claiming your own retirement benefit first and then wait until your full retirement age to claim the larger survivor benefit. You cannot receive both survivor benefits and your own Social Security retirement benefits at the same time. Let’s look at an example:

James is 60 years old and eligible for both his own Social Security retirement benefit and a survivor benefit from his deceased spouse. At his full retirement age (67), James’ own benefit would be $1,500 per month, and his survivor benefit would be $1,600 per month.

Seek the help of a financial advisor

Dealing with the death of a loved one is extraordinarily stressful. Your COUNTRY Trust Bank Financial Advisor can provide you with guidance on claiming Social Security survivor benefits, as well as assisting you with other financial decisions that affect your future.