Survivor Benefit Timing Calculator: the facts

1. A surviving spouse can claim a survivor benefit from age 60 (50 if disabled), reduced by up to 28.5 percent, or wait until survivor full retirement age for the deceased's full benefit. The reduction is spread evenly over the months in between (20 CFR 404.410(c)).
2. Survivor full retirement age runs two birth years behind the retirement table: 66 for those born 1945 through 1956, rising two months a year, 67 for those born in 1962 or later (20 CFR 404.409(b)). A survivor born in 1960 reaches it at 66 and 8 months.
3. The survivor benefit and the survivor's own retirement benefit are two separate entitlements, and only the larger is paid. But they can be taken in sequence: one first, the other later when it has grown, which is what makes the timing a choice.
4. The two orders are: the survivor benefit at 60 while the survivor's own benefit grows with delayed credits to 70; or the survivor's own benefit at 62 while the survivor benefit waits for full retirement age. Which wins depends on which of the two is larger at its best, and on how long the survivor lives.
5. Example: a survivor born in 1964 whose late spouse's full benefit was $2,800 a month and whose own is $2,200: the survivor benefit at 60 is $2,002; their own at 70 is $2,728. Taking the survivor benefit first and switching at 70 pays $897,688 through 90 against $868,000 the other way.
6. If the deceased had claimed a reduced retirement benefit, the survivor benefit is capped at the larger of that reduced amount or 82.5 percent of the full amount (20 CFR 404.338(c)); and a survivor who remarries before 60 loses the survivor benefit while married.

Educational only, not investment, tax, or legal advice. Results are hypothetical estimates that vary with each use and over time and are not guaranteed accurate or complete. Using this tool creates no client relationship with Considerate Capital, and the site that linked here is not affiliated with it. By using it you agree to the tool terms.