Divorce and widowhood are two of life’s most emotional and financially disruptive events. Yet many people do not realize these changes can also create valuable Social Security claiming opportunities.
I’m grateful for the long-term relationships I build with clients. The story of one of my clients — let’s call her Clarice — shows why understanding Social Security matters. Clarice was divorced. She was also a widow.
Clarice and I began working together during her first marriage. Five years later, she became a widow in her 50s. She knew little about her late husband’s finances.
This situation is more common than most people realize. As we developed her financial plan, we discovered she had more resources and flexibility than she had thought.
Key Takeaway
Social Security benefits for divorced spouses
Divorced-spouse benefits are among the most overlooked sources for retirement income planning. You may qualify if:
- The marriage lasted at least 10 consecutive years.
- The claimant is aged 62 or older.
- The claimant is currently unmarried.
- The claimant’s own retirement benefit is less than the divorced spouse’s benefit.
- The divorce has been final for at least two years and the ex-spouse has not yet filed for benefits3.
How much can a divorced spouse receive?
The maximum divorced spouse benefit is up to 50% of the former spouse’s full-retirement-age (FRA) benefit.3
If the claimant is entitled to a higher benefit on their own work record, the Social Security Administration pays the higher amount, not both.
Many clients worry that filing on an ex-spouse’s record will reduce the retirement benefit the ex-spouse will receive. It does not.
A divorced spouse benefit does not affect the ex-spouse’s monthly benefit, and the ex-spouse does not need to approve the claim.3
Survivor benefits for widows and widowers
Survivor benefits can be more valuable than standard divorced spouse benefits. A surviving spouse or divorced spouse may receive up to 100% of the worker’s benefit. The amount depends on the age when benefits begin.4
Eligibility for surviving divorced spouses
Surviving divorced spouses may qualify if:
- The deceased former spouse was entitled to Social Security benefits.5
- The marriage lasted at least 10 years.
- The claimant is 60 years old or older (or age 50 if disabled).
- The claimant is unmarried, unless the remarriage occurs after age 60.
Remarrying after age 60
Remarrying after age 60 generally does not end eligibility for survivor benefits on a deceased or ex-spouse’s record.6 This rule creates valuable planning opportunities for clients with multiple marriages.
Multiple marriages and Social Security claiming strategies
Clarice assumed that her options were limited after her divorce. However, her second marriage lasted more than 10 years, so Clarice could claim divorced spouse benefits based on her former husband’s earnings record. She was also eligible to compare that benefit with a survivor benefit from her first husband.
After reviewing both options, the divorced-spouse benefit from her second husband’s record gave her higher monthly income.
Clients who have been married more than once may be eligible to compare:
- Their own retirement benefit.
- A divorced spouse benefit from a living former spouse.
- A survivor benefit from a deceased spouse.
- A survivor benefit from a deceased former spouse.
Social Security pays the highest benefit for which the claimant qualifies.
Timing matters in retirement planning
Claiming Social Security benefits early can permanently reduce monthly income.
- A divorced spouse may start getting benefits at age 62. But the amount drops if the divorced spouse claims benefits before full retirement age.
- Survivor benefits may begin as early as age 60. In some cases, a client may claim one benefit first and switch to another later. This can create more Social Security claiming strategies.
Because these decisions are often irreversible, it is wise to consider all options before filing.
Common Social Security mistakes after divorce or loss of spouse
- Assuming divorce permanently eliminates benefit rights
- Claiming benefits early without understanding the long-term reduction
- Believing an ex-spouse must give permission
- Overlooking survivor benefits from a deceased ex-spouse
- Failing to compare benefits from multiple marriages
Divorce and the loss of a spouse can change retirement plans. But they do not always reduce financial opportunities.
For more information on which benefits may be available to you, contact your wealth advisor. Not a client?
