Widower may receive Social Security benefits based on wife’s earnings record — MarketWatch
A 62-year-old man whose wife died at age 60 after more than 30 years of marriage may be eligible for Social Security survivor benefits calculated based on her earnings record. This was stated in MarketWatch's response in a financial advice column to a question from an acquaintance of the widower.
The deceased wife had a long career in banking and earned more than her husband. He has his own work history but does not know what his own benefit will be after reaching full retirement age, and is considering applying for benefits at age 65 or 67.
Eligibility and benefit amount
According to the columnist, survivor benefits are available to people who were married to their deceased spouse for at least 10 years. They may also be available after divorce if the marriage lasted at least 10 years and the former spouse did not remarry before age 60.
Those who apply for such benefits after reaching full retirement age generally receive 100% of the deceased spouse's basic benefit amount. If they apply between age 60 and full retirement age, the amount may range from 71% to 99%, depending on the applicant's age.
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Work and tax implications
If the man claims benefits at age 62, their amount will be permanently reduced. If he continues working until reaching full retirement age, the earnings test may also reduce the amount he actually receives.
The author advises comparing projected personal benefits at ages 62, 67, and 70, taking into account salary and earnings-test rules. Spousal and survivor benefits do not increase after full retirement age, which in this case is 67. At the same time, his own benefit may grow by 8% annually until age 70.
If the deceased wife had funds in 401(k) accounts, an IRA, a pension, or other assets, this could move the widower, as a single taxpayer, into a higher tax bracket. The columnist recommends seeking professional financial and tax advice.
