Social Security strategy question for 65-year-old wife with terminal husband - collect own SS now and survivor later?

Your thinking is on the right track. Here's how it works: Your sister-in-law can claim her own retirement benefit now at 65 (it will be reduced about 6.7% from her full retirement amount since she's claiming before FRA). Then later, if her husband passes away, she has options regarding survivor benefits. If he passes before she reaches her FRA, she can either: 1) Switch to reduced survivor benefits immediately (reduction depends on her exact age) 2) Continue receiving her own benefit and switch to full survivor benefits at her FRA The best choice depends on several factors, including how reduced the survivor benefit would be if taken early and her own financial needs. If she doesn't need the money immediately, waiting until FRA for the full survivor benefit is often mathematically advantageous.

OMG my mom was in this EXACT situation last year!!! She started taking her SS at 65 (only got like $600) and then when my dad died she had to decide about survivor benefits. The SSA people were NOT helpful at all - she waited on hold for like 3 hours and they just kept transferring her around. Super frustrating!!

You're definitely approaching this correctly. When dealing with survivor benefits and own retirement benefits, it's important to understand that she can receive one OR the other, whichever is higher, but not both combined. If she claims her own benefit now at 65, she'll receive approximately 93.3% of her PIA (Primary Insurance Amount). Then if her husband passes away: - If she claims survivor benefits before FRA, they'll be reduced (approximately 4.75% reduction for each year before FRA) - If she waits until FRA, she'll receive 100% of what her husband was receiving ($3,100 in your example) Since her own benefit is $670 and her potential survivor benefit at FRA would be $3,100, it makes financial sense to: 1. Take her own reduced benefit now 2. Later switch to the higher survivor benefit (either reduced early or full at FRA) The cumulative lifetime benefit is usually maximized by getting some money now (her own) and then switching to the maximum survivor benefit at FRA.

To answer your follow-up question: No, she cannot receive both her own benefit and survivor benefits simultaneously at their full amounts. When eligible for both, Social Security pays her own benefit first, and then adds an additional amount to bring the total up to the survivor benefit amount if the survivor benefit is higher. In practical terms, this means she'll receive whichever amount is higher - either her own benefit or the survivor benefit. Since her own benefit is $670 and her husband's is $3,100, once she switches to survivor benefits, she would effectively receive the $3,100 (or a reduced amount if taken before FRA).

@confused_commenter No, you cannot receive both benefits in full simultaneously. Your neighbor's mother might have been describing one of these situations: 1) Receiving a partial combination (own benefit + partial survivor benefit that brings total to the higher amount) 2) Receiving survivor benefits from one spouse and retirement benefits based on another spouse's record (rare scenario with multiple marriages) 3) Confusing SSI and SSDI with retirement benefits The general rule is you get the higher of the two benefits, not both added together.

Just sharing my experience- my husband passed 2 years ago. I took my own SS at 63 ($850/m) and now at 66 (my FRA) switched to survivors benefits ($2800). The SS office told me this was the best strategy. I did lose some $$ by taking survivors benefits at FRA instead of age 70, but I needed financial stability more than maximizing. Make sure she talks through ALL options when at the SSA office!

thanks for clearing that up! my neighbor is kind of a know-it-all anyway lol. so to make sure i understand, the best move is usually: - take smaller benefit early - switch to bigger benefit later is that right?

The SSA website is SO confusing about this!!! I spent hours trying to understand the rules for my mom. They seriously need to hire people who can explain things clearly!

Thank you all for the helpful responses! I feel much more confident in the advice I'm giving her now. I'll make sure she understands: 1. Take her own benefit now at 65 ($670/month) 2. If her husband passes before her FRA, decide whether to take reduced survivor benefits immediately or wait until FRA for the full amount 3. The decision will depend on her financial needs and the exact reduction amount The differentiation between FRA for retirement vs. survivor benefits is something I hadn't considered - I'll make sure she asks specifically about that at the SSA office. This has been incredibly helpful!