Social Security retirement at 62 while receiving workers comp death benefits - income rules confusion

First, I'm so sorry for your loss. Let me try to help with your questions: 1. Workers comp death benefits are NOT considered earned income for Social Security purposes. They won't count toward the earnings test, but they might affect other benefits. 2. For the earnings test (what reduces benefits if you work before FRA), SSA looks at your current year earnings. If you're planning to retire, they'll ask for an estimate of what you'll earn in the year you file. They'll adjust based on what you actually earn. 3. As a widow, you have options. You can take: - Reduced survivor benefits as early as age 60 - Your own reduced retirement as early as 62 - Either benefit at full amount at respective FRAs 4. Yes, you can switch between benefits! Many widows take reduced survivor benefits early, then switch to their own retirement benefit later if it's higher (or vice versa). With your current income, you're right that you'd have substantial benefit reductions under the earnings test if you claim now. But once you actually stop working, that would change immediately.

im so sorry about ur husband. just wanted to share that my mom was in similar situation when my dad died. she got workers comp death benefits too but she still got some survivors benefits from ssa. i think they did some kind of offset calculation? not 100% sure how it worked but she definitely got both. might be worth asking ssa directly about that.

I went through this when my spouse passed, and I want to clarify some important points: 1. The earnings test for 2025 if you're under FRA is $22,320 per year. For every $2 you earn above that, SSA withholds $1 in benefits. At $89,000, your benefits would be completely withheld. 2. Income counting starts the month you begin receiving benefits. If you retire in June and apply then, only your earnings from June-December count for the earnings test that year. 3. You have what's called a "Widow(er)'s Choice" - you can take ONE benefit early and switch to the other later. Most financial advisors suggest: - If your own benefit will eventually be higher: Take survivor benefits at 60 and switch to your own at 70 - If survivor benefit will be higher: Take your own at 62 and switch to survivor at your FRA Since you're already 62, I'd recommend consulting with an SSA representative about exact benefit amounts in your case before making any decisions.

If ur getting workers comp death benefits, the SSA will probably make u fill out a bunch of extra forms. They ALWAYS make everything so complicated!!! My sister got widow benefits and had to fill out like 10 forms and still got denied the first time for no reason!! Had to appeal and wait another 3 months. So frustrating!!!

Have you tried calling Social Security to get answers specific to your situation? Their website has general info, but what you're dealing with is pretty complex and specific to your circumstances. I tried calling them last month about my retirement benefits calculation and gave up after being on hold for HOURS. Anyone know a better way to actually reach a human being there?

One more important thing - you mentioned workers comp death benefits not being taxable. That's correct, but be aware that if you start receiving Social Security benefits (either survivor or retirement), up to 85% of those Social Security benefits may become taxable depending on your combined income. Combined income for this purpose = Adjusted Gross Income + Nontaxable Interest + 1/2 of Social Security Benefits So even though your workers comp death benefits aren't taxable themselves, they don't count toward making your Social Security benefits taxable. Just something to plan for with your tax situation.

btw my friend told me widows can remarry after 60 without losing survivor benefits is that true???

Thank you everyone for all this helpful information! I've scheduled an appointment with SSA for next month to go over all my options. Based on your advice, I'm thinking I might work until the end of the year to avoid any earnings test issues, then apply for survivor benefits in January when I'm 63. Then at my FRA or possibly at 70, I'll switch to my own retirement benefit if it would be higher by then. The workers comp/survivor benefit interaction is still confusing me though. I'll definitely ask SSA about any possible offset calculations. This has been so much more helpful than trying to figure it all out from the SSA website!

make sure u bring ALL ur paperwork to that appointment!!! birth certificates, marriage certificate, death certificate, workers comp award letter, tax returns, EVERYTHING. my aunt forgot one document and had to reschedule the whole thing and wait another month!!