Can you please explain how the widow's benefits are calculated.

Thank you,
Tima

Hi Tima,

I really couldn't fully explain the computation of widow's benefits without writing for days. I can tell you that in most cases unreduced widow's benefits are paid at a rate of 100% of the amount that the deceased spouse would have been receiving based on their own earnings if they were still alive. However, widow's benefits are reduced for age if the widow starts drawing them prior to full retirement age (FRA). And, if the deceased spouse drew reduced retirement benefits prior to their death the widow's benefit rate is limited to the higher of 82.5% of the deceased spouse's primary insurance amount (PIA) or the reduced rate that the deceased worker would have been drawing if they were still alive. A person's PIA is basically the same as their full retirement age retirement benefit rate. If you'd like more information, refer to Social Security's website: https://www.ssa.gov/planners/survivors/onyourown.html#h5.

To further complicate matters, if the deceased spouse died prior to age 62 an alternate benefit computation formula can be used to calculate the widow's basic unreduced benefit rate. This computation formula is referred to as WINDEX, and it would only be used if the WINDEX formula yields a higher benefit rate than the normal formula. Also, a widow can't be paid both their own Social Security retirement benefits and a full widow's benefit at the same time. If and when the widow files for both benefits, they would only be paid the higher of the two benefit rates.

Our software is programmed to compute widow's benefit rates using both of the formulas described above. There are also several filing strategies that can be particularly advantageous for people who potentially qualify for both retirement and widow's benefits. If you are a widow and you aren't already drawing benefits, you should strongly consider using our software to explore your various options and determine your best strategy for claiming your benefits.

Best, Jerry