A widow in her early 60s faces a Social Security claiming decision that can outweigh investment choices. Survivor benefits can be claimed as early as age 60 at a reduced amount, then later switched to the widow’s own retirement benefit, including delayed credits earned by waiting until age 70. Using the example of a late husband with a $3,200 monthly benefit at full retirement age, claiming survivor benefits at 60 yields about $2,288 per month. The widow’s own benefit is about $2,400 at full retirement age 67 and about $2,976 at age 70. Claiming survivor benefits from 60 to 69 and switching at 70 can produce higher total income by age 80 than waiting to claim only her own benefit.
"A widow can claim a reduced survivor benefit as early as age 60, then switch to her own retirement benefit later, including delayed credits earned by waiting until 70. That dual-claim option vanishes the moment a divorced or married spouse tries the same move on a living partner's record."
"Claiming survivor benefits at 60 locks in roughly 71.5% of her late husband's $3,200 FRA, or about $2,288 a month, for as long as she stays on that benefit. Her own work record entitles her to $2,400 a month at her full retirement age of 67, or $2,976 a month if she waits until 70."
"If she takes the survivor benefit from ages 60 through 69, she collects about $274,560 in cumulative payments while her own retirement benefit accrues delayed credits in the background. At 70 she switches to her own benefit at $2,976 a month. By age 80 she has banked roughly $631,680 in total Social Security income."
"Compare that with skipping survivor benefits and waiting until 70 to claim her own. She collects nothing from 60 to 69, then $2,976 a month from 70 onward, for about $357,120 by age 80. The switch strategy adds roughly a quarter-milli"
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]