SSA suggests switching from survivor benefits to my own - will I lose delayed retirement credits?

This is a common notice SSA sends out when they see a significant difference between what you're currently receiving and what you'd get on your own record. However, it doesn't necessarily mean your strategy is wrong. If your own benefit at 70 would be significantly higher than your own benefit now, your strategy of collecting survivors while letting your own benefit grow could still be financially optimal in the long run, especially if you have average or better life expectancy. What you need to determine is the "break-even point" - how long would you need to live for the delayed strategy to pay off? If your own benefit now is truly 3x your survivor benefit, you'd need to calculate whether the accumulated difference plus the 8% per year growth makes mathematical sense.

my sister got the same letter last year and she ended up switching to her own benefits right away. SSA wouldn't send u the letter if it wasn't better for u right? that's what she figured

I think you need to do some actual calculations with real numbers here. If your own benefit NOW is truly 3x your survivor benefit, waiting might NOT make sense. Let's say your survivor benefit is $1000/month and your own benefit now would be $3000/month. That's a $2000/month difference. Over 4 years (from now to age 70), that's $96,000 in benefits you're giving up! Yes, your age 70 benefit would be about 32% higher than your FRA benefit (8% x 4 years), so instead of $3000 it might be around $3,960. But it would take YEARS to make up that $96,000 difference. I'd strongly suggest calling SSA to get exact benefit amounts and then do the math carefully.

When I was trying to figure out my retirement strategy, I spent HOURS trying to get through to someone at SSA who could actually explain my options. It was awful - I'd wait on hold for hours only to get disconnected or talk to someone who gave me conflicting info. I finally found this service called Claimyr (claimyr.com) that got me connected to a real SSA agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU I was skeptical at first but it actually worked and I finally got clear answers about my widow benefits vs. my own record. Made such a difference in understanding my options.

The SSA's letter is VERY MISLEADING!!! They're just looking at what gives you the highest payment RIGHT NOW, not what's best for your lifetime total! They don't care about maximizing your lifetime benefits! I was in almost the identical situation after my wife died in 2023. I was taking survivor benefits and planning to switch to my own at 70. Got the same letter. When I FINALLY got through to someone at SSA, they admitted that my original plan would likely give me more money in the long run, but their system automatically generates those letters when they see you could get more money immediately. DON'T let them bully you into giving up your delayed retirement credits unless you've done the math and know FOR SURE it's better for your situation!!!

One important thing to consider in your calculations: tax implications. If your own benefit is significantly higher than your survivor benefit, switching now means more income, which could push you into a higher tax bracket or affect how much of your Social Security is taxable. It could also impact Medicare premiums if you're enrolled. For a truly accurate comparison, you need to look at the after-tax, after-Medicare premium amounts for both scenarios. Sometimes what looks better on paper isn't better in your actual bank account.

my financial advisor told me that for most widows its usually best to take survivor benefits first and then switch to your own at 70 IF your own benefit would be higher with the delayed credits. but if your own benefit is already 3x higher right now, waiting might not make sense. every situation is different!

There's actually a relatively simple way to calculate your break-even point. If your FRA benefit is $3,400 and you delay 4 years to get 32% more (about $4,488), you're giving up $2,200/month for 48 months ($105,600 total) to get an extra $1,088/month for the rest of your life after 70. $105,600 ÷ $1,088 = 97 months (about 8 years) to break even So if you expect to live beyond age 78, delaying still makes mathematical sense even with the big difference between benefits. Of course, this doesn't account for investment potential of that money if you took it earlier, or tax considerations.