Page 18 - South Mississippi Living - December, 2017
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COASTNOTES
FINANCIALFUTURES
SOCIAL SECURITY: story by Suzie Sawyer
Understanding Spousal Benefits for Widows and Widowers
Understanding Social Security survivor benefits is important for all widows and widowers so that they can be sure to receive all of the Social Security benefits for which they may be entitled.
When a spouse passes away, Social Security will pay survivor benefits to the surviving spouse for the remainder of his or her life. The general rule is that the marriage must have lasted
for at least nine months. However, there are exceptions. For instance, if one spouse passes away as a result
of an accident or act of war, survivor benefits are payable no matter how brief the marriage.
Survivor benefits are based on
the decedent’s Primary Insurance Amount (PIA). The decedent’s PIA is the amount he or she received, or was eligible to receive, at Full Retirement Age (FRA). The survivor benefits also include any delayed retirement credits earned by the decedent. As long as
the survivor has reached his or her FRA, he or she is eligible for 100%
of what the decedent was receiving,
or was eligible to receive at his or
her passing. A surviving spouse is
eligible to claim reduced benefits from the decedent’s work record as early
as age 60. Assuming an FRA of age
66, the survivor could claim 71.5%
of the decedent’s PIA at age 60. This percentage will increase every year the survivor waits to access survivor benefits until FRA, when he or she is eligible to receive 100%.
If neither spouse is collecting Social Security when one spouse passes away, the surviving spouse has access to two Social Security benefits, his or her own and the decedent’s. Social Security will let the survivor take one of the benefits for a period of time and switch to the other later.
In order to make the most beneficial claiming decision, you must determine which benefit is larger, the amount at the decedent’s FRA or at the survivor’s age 70. Prior to FRA, either benefit could be reduced by the earnings
test if the survivor is collecting a benefit and earning income above set thresholds.
It is extremely important that you understand your options for Social Security survivor benefits so that you can receive all of the benefits for
which you may be eligible. Consult with your legal and tax advisors.
18 SOUTH MISSISSIPPI Living • December 2017
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Article provided by Suzie P. Sawyer, Managing Director/Investment Advisor Representative of Trinity Investment Services, LLC, who can be reached at (228) 864-4460. Securities offered through Century Securities Associates, Inc., Member SIPC and FINRA, a subsidiary of Stifel Financial Corp. Home Office: 501 North Broadway, St. Louis, Missouri 63102, (314) 342-4051.