If you are a widow or widower and planning to remarry, it’s important to understand that age 60 is significant in your decision. If you remarry after the age of 60, you may be eligible for either your survivor benefit of 100% of your deceased spouse’s benefit, or 50% of your new spouse’s benefit, whichever is higher. By marrying after 60, you leave yourself the option of choosing the higher benefit of the two. If you remarry before turning 60, you eliminate this option.
For example, assume Jane Doe’s spouse, John Doe, passed away four years ago. Jane was married to John for at least nine months, which generally allows her to qualify for Social Security survivor benefits based on John’s earnings record, subject to Social Security eligibility rules. At John’s Full Retirement Age of 67, his estimated Social Security benefit was $3,600 per month. If Jane claims survivor benefits at her survivor Full Retirement Age, she may be eligible to receive up to 100% of John’s benefit. If she claims earlier, benefits may be reduced. Eligibility and benefit amounts are determined by the Social Security Administration and depend on individual circumstances.
Jane meets her new partner, Brian Smith, whose estimated Social Security benefit at his full retirement age of 67 is $4,000 per month. Jane is 59 and 5 months old and considering marriage. Under current Social Security rules, remarriage at age 60 or older generally allows a surviving spouse to remain eligible for survivor benefits based on a prior spouse’s earnings record. In this example, the survivor benefit is assumed to be $3,600 per month, which exceeds a potential spousal benefit of up to 50% of Brian’s benefit, or $2,000, if claimed at full retirement age.
In this hypothetical scenario, Jane waits until she turns 60 to remarry. If she later claims survivor benefits based on her deceased spouse’s earnings record, and if Brian subsequently passes away, Jane may be eligible to apply for survivor benefits based on Brian’s earnings record. Social Security generally pays the single highest benefit for which an individual qualifies; benefits are not combined. Benefit eligibility and amounts are determined by the Social Security Administration and are subject to applicable rules and limitations.
Social Security rules can get complex! It’s important to know the rules so you can make an informed decision.
Any opinions are those of Vocare Wealth Advisors and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
