Survivor benefits are also available immediately if the survivor is at least age 60. The survivor can get 71.5 percent of the deceased’s PIA at her age 60. As usual, waiting to file means bigger checks with the benefit reaching 100 percent of the deceased’s PIA once the survivor reaches Full Retirement Age for survivors. Yes. FRA for survivor benefits is on a different scale from the one used for retirement benefits.
If the survivor is disabled before the worker’s death, within seven years of the workers death, while caring for a child receiving benefits on the deceased’s record OR within seven years after benefits to said child ended, the survivor can claim as early as age 50 at 71.5 percent of the deceased’s PIA.
Just as filing for retirement benefits prior to FRA subjects benefits to the earnings test, receiving survivor benefits at early ages is affected by how much the survivor earns in wages.
However, unlike filing for retirement early, filing for survivor benefits does not result in the survivor being first deemed to have begun her retirement benefits early. The survivor can claim survivor benefits, allowing her retirement benefit to grow, and switch to her retirement benefit as early as age 62 or as late as 70. She will earn delayed credits if she waits past her FRA. She also has the option of filing for her own retirement benefit and switching to the survivor benefit at her FRA.
Of course, some clients have more than one ex-spouse. It is possible to be eligible for benefits off each ex-spouse’s record, but the client can only collect on one at a time.
It is also common to have clients that are currently married but also have an ex-spouse. Remarriage can eliminate eligibility for ex-spouse benefits but not always.
If a client remarries before age 60, she cannot get spousal benefits off an ex-spouse’s record while married to the new spouse. Should that subsequent marriage end, her eligibility is restored.
If the marriage to the new spouse also lasted 10 years or the new spouse died, she may be eligible for benefits off the first husband and off the second husband, but she can only take benefits off of one.
Back to my client. Her ex is still alive. She is happy to hear that. She’s got more money coming to her than she thought and she has more confidence in her future. If you aren’t really basing your clients relationships on financial planning, you may be missing opportunities like this. Trust me. Your client won’t be the only one that benefits. Being able to notice something like this and turn it into a tangible boost to my client’s outlook is one of the things that drives me and brings me joy.
Dan Moisand, CFP, has been featured as one of the America’s top independent financial advisors by Financial Planning, Financial Advisor, Investment Advisor, Investment News, Journal of Financial Planning, Accounting Today, Research, Wealth Manager, and Worth magazines. He practices in Melbourne, Fla. You can reach him at [email protected].