Help Needed: Questions about Social Security for Surviving Spouse

[iluvzbeach]

Hi MMM Forum Members, I hope I can tap into your expertise regarding a situation I am trying to assist a friend with during a very difficult time.  Please forgive me for asking for your time and knowledge vs. doing all the research myself.  The situation is as follows:

• Friend passed away, was in their 50s
• Surviving Spouse (SS) is 62 but not drawing social security yet
• Friend who passed was the breadwinner, but both spouses worked and are/were eligible for social security at retirement age

I believe the SS can draw on their deceased spouse's social security benefits and I think they can even allow their own benefit to continue to grow to either FRA or age 70, so they can switch at some point to their own benefit and possibly draw more (please correct me if I'm wrong on this).

Questions:

• If SS requests to draw on their deceased spouse's benefits, what benefit level would they get?  (Is it based on the SS's age at the time they request it or something else?)
• Is it true the SS can allow their own benefit to grow and then switch to drawing on their own benefit at some point when it (if ever) exceeds the amount of their deceased spouse's benefit?
• If the SS is still working (currently self-employed but not sure how much income they are actually realizing each year), will they be subject to the pre-FRA income limits that then reduce benefits by $1 for every $2 above the limit?

Any answers to the above and links to written information or forms that you can provide would be greatly appreciated.  Also, if there's something I should be asking that I'm not, please feel free to provide that additional information.

My goal is to provide some initial information to my friend's SS that will allow them to then work with their lawyer or tax person to determine the best way to proceed.  As you can imagine, the SS is a bit overwhelmed right now so I'm trying to help where I can on business-related items.

Again, thank you.

[fuzzy math]

Get What's Yours: The secret to maximizing social security --- is the go to book for this sort of thing. I think the rules changed and the widowed spouse might accidentally lower their future options by drawing now. If they need to draw money right now though, it doesn't really make a huge difference what the consequences are later.

[Kris]

Get What's Yours: The secret to maximizing social security --- is the go to book for this sort of thing. I think the rules changed and the widowed spouse might accidentally lower their future options by drawing now. If they need to draw money right now though, it doesn't really make a huge difference what the consequences are later.

Yes, came here to post this. Get this book for your friend.

[DaMa]

I did a bunch of research on this last year, and met with SS in February to get the numbers.   My spouse died at 54.  I can collect his pension at age 60, and it is about 70% of his full retirement age (FRA) benefit.  It goes up each month that I delay taking it.  I can then take my benefit at any time as usual age 62-70.

Your friend should schedule an appointment with a nearby Social Security Administration.  They can give her the actual numbers.

There is no rule change on surviving spouse -- several other "loopholes" were removed several years ago.  There are some rules - can't be remarried, have to be married so long, etc.
Tax rules apply (no difference on spousal vs own benefit).

https://www.ssa.gov/benefits/survivors/ifyou.html

[Catbert]

Since she's under FRA she will be subject to earned limits.  For every two dollars she earns over ~18K she'll lose one. 

Good luck to your friend.

[iluvzbeach]

Thank you for the book suggestions and other replies. I’ll order a copy of the book for the SS and digest they also make an appointment at their local social security office.