UNDERSTANDING ELIGIBILITY, BENEFITS CALCULATION, AND MORE
Losing a loved one is never easy. Not only can it be emotionally, mentally, and physically draining, but it can be financially draining, too – especially if the deceased was the primary breadwinner in your household. However, if your loved one was receiving Social Security benefits, you may be eligible for survivor benefits that can help support you and your family during this difficult time and into the future. Below, we will explain what you need to know about Social Security survivor benefits, including who is eligible, how benefits are calculated, and how to apply for them.
What Are Social Security Survivor Benefits?
Social Security survivor benefits are monthly payments made to the surviving spouse, children, or other eligible family members of a deceased Social Security recipient. These benefits can help replace the lost income of the deceased person and provide financial support to the surviving family members.
Who Is Eligible for Social Security Survivor Benefits?
To be eligible for Social Security survivor benefits, you must be the surviving spouse, child, or other eligible family member of a deceased Social Security recipient. Eligibility requirements vary depending on your relationship to the deceased person and your age:
Eligibility: Surviving Spouse
If you are the surviving spouse of a deceased Social Security recipient, you may be eligible for survivor benefits if you meet one of the following requirements:
- You are at least 60 years old.
- You are at least 50 years old and disabled.
- You are caring for a child who is under the age of 16 or disabled.
SEE ALSO: THREE REASONS TO DELAY TAKING YOUR SOCIAL SECURITY BENEFITS
Eligibility: Surviving Children
If you are a surviving child of a deceased Social Security recipient, you may be eligible for Social Security survivor benefits if you meet one of the following requirements:
- You are under the age of 18.
- You are between the ages of 18 and 19 and still in high school.
- You are over the age of 18 and have a disability that began before the age of 22.
Eligibility: Other Eligible Family Members
In some cases, other family members may be eligible for Social Security survivor benefits, such as dependent parents or grandchildren. Eligibility requirements vary depending on the relationship to the deceased person and the age of the family member. You can learn more on the Social Security Administration website.
How Are Social Security Survivor Benefits Calculated?
The amount of Social Security survivor benefits you are eligible for depends on various factors, including the deceased person’s work history and the relationship between you, the survivor, and the deceased person. Generally, the higher the deceased person’s lifetime earnings, the higher the survivor benefits will be.
If you are a surviving spouse, you can receive up to 100% of your deceased spouse’s Social Security benefit amount. However, if you begin receiving survivor benefits before you reach full retirement age, your benefits will be reduced.
If you are a surviving child, you can receive up to 75% of your deceased parent’s Social Security benefit amount. Note that the total amount paid to all eligible family members cannot exceed the deceased person’s Social Security benefit amount.
How to Apply for Social Security Survivor Benefits
To apply for Social Security survivor benefits, you will need to contact your local Social Security office. You will need to provide various documents, such as the deceased person’s death certificate, your own birth certificate, and other proof of relationship.
It’s important to note that you should apply for survivor benefits as soon as possible after the death of the Social Security recipient. You may be able to receive benefits retroactively, but the longer you wait to apply, the fewer retroactive benefits you will be eligible for.
SEE ALSO: REVIEW YOUR BENEFICIARY DESIGNATIONS BEFORE YOU RETIRE
Additional Considerations
While Social Security survivor benefits can provide financial support to the surviving family members of a deceased Social Security recipient, it’s important to keep in mind that they are not intended to cover all of your living expenses. You may need to consider other sources of income and financial support, such as life insurance, savings, and assistance from family and friends. Additionally, you may want to consult with a financial advisor to help you make the most of the benefits and other financial resources available to you.
It’s also important to keep in mind that Social Security survivor benefits may be subject to taxes, depending on your income and filing status. You should consult with a tax professional to understand how survivor benefits may impact your taxes.
Finally, if you are receiving Social Security survivor benefits as a spouse, you may be eligible for additional benefits if you have dependent children under the age of 16. These benefits are known as auxiliary benefits and can provide additional financial support to help you care for your children.
Final Thoughts
Losing a loved one is a challenge on many levels, but Social Security survivor benefits can help provide financial support for your future. Understanding the eligibility requirements, how benefits are calculated, and how to apply for them is important to ensure you receive the maximum benefits available to you. If you have questions about Social Security survivor benefits, contact your local Social Security office or consult a financial professional you trust.
If you’re looking for help managing your finances and making the most of your Social Security survivor benefits, consider contacting TriCapital Wealth Management. Our team of financial planners and advisors can help you navigate the complex world of financial planning and create a personalized plan to help you achieve your financial goals and feel financially secure. Contact us today to schedule a consultation.
Securities offered through Triad Advisors, LLC, member FINRA/SPIC. Advisory services offered through TriCapital Wealth Management, Inc. TriCapital Wealth Management, Inc. is not affiliated with Triad Advisors, LLC.
