My husband died 2 years ago at age 73 when I was 61. I am currently receiving my own reduced social security benefit which I chose to start at age 62 and will then switch to take the survivor benefit at age 66 (which will be a much higher amount than my own). If I start earning more income from employment now at age 63 that would be subject to the social security earnings test, my understanding is the amount withheld from my benefit due to earnings test would be "paid back" over time later. But if I switch to the survivor benefit at age 66, do I permanently lose whatever was withheld due to the earnings test? Or is that still added back to the survivor benefit I will be receiving?

Hi,

I'm sorry for your loss.

Yes, based on your set of circumstances any benefits withheld due to the earnings test will be permanently lost. The only thing that can cause benefits lost to the earnings test to potentially be recovered in the future is the recalculation of reduced benefit rates that occurs at full retirement age (FRA). At FRA, a person who received reduced benefits has their benefit rate recalculated to remove any percentage reduction that was applied for months of entitlement that ended up not being paid due to the person's excess earnings. Over time, the resulting higher benefit rate can allow the person to recoup some or all of the benefits lost to the earnings test.

In your case, however, although you would be eligible for the recalculation described above, any increase in your retirement benefit rate occurring at FRA would not increase the combined benefit rate for which you would be eligible once you file for widow's benefits. Your widow's rate will essentially just supplement your own retirement rate to bring the combined level up to your full widow's rate, so any increase to your own lower retirement rate would have no impact on your total rate.

Best, Jerry