Widows retirement income plan

Retirement Income Planning for Widows

Widows face unique financial challenges in retirement, especially when transitioning from dual to single income sources. A comprehensive retirement income plan for widows should address Social Security survivor benefits, pension or annuity options, and strategies for maximizing long-term financial security.

Social Security Survivor Benefits

A widow or widower can receive Social Security survivor benefits as early as age 60 (or 50 if disabled), but the benefit amount is reduced if claimed before full retirement age (FRA).

At FRA or older, the surviving spouse is generally entitled to 100% of the deceased spouse’s basic benefit amount. If claimed between age 60 and FRA, the benefit ranges from 71% to 99% of the deceased’s benefit.

If the widow is caring for a child under age 16, she can receive 75% of the worker’s benefit, regardless of her age.

If the deceased spouse claimed Social Security before their FRA, the survivor benefit is limited to the greater of what the deceased was receiving at death or 82.5% of the deceased’s FRA benefit.

Widows who also qualify for their own Social Security benefit can choose to claim the survivor benefit first and switch to their own (potentially higher) benefit later, allowing it to accrue delayed retirement credits until age 70.

Pension and Private Retirement Plan Survivor Benefits

Most employer-sponsored pensions and retirement plans offer a survivor benefit, typically in the form of a joint-and-survivor annuity. This provides monthly payments to the surviving spouse for life, though the amount is usually lower than a single-life annuity.

The survivor benefit is generally a percentage (often 50% or two-thirds) of the deceased retiree’s benefit.

Some plans have minimum annuity amounts for surviving spouses, with eligibility and calculation methods based on years of service, salary, and age at death.

Key Planning Considerations

Income Reduction: After a spouse’s death, household income often drops significantly, as only one Social Security benefit continues (the higher of the two), not both. Widows must plan for this reduction and adjust their budgets accordingly.

Remarriage: Remarriage after age 60 does not affect Social Security survivor benefits. If remarriage occurs before age 60, survivor benefits typically end.

Divorced Spouses: Divorced widows may also qualify for survivor benefits if the marriage lasted at least 10 years.

Action Steps for Widows

Contact the Social Security Administration promptly to apply for survivor benefits, as they are not automatic and require documentation.

Review all pension and retirement account beneficiary designations and survivor benefit options.

Consider working with a financial advisor to create a comprehensive retirement income plan, factoring in survivor benefits

daily webinar on widows retirement income plan

Connie Dello Buono

investment Fiduciary

4088541883

motherhealth@gmail.com