(Courtesy of Medicare Done) Many couples plan their retirement assuming they’ll receive two Social Security checks for life, but that’s not how survivor benefits work.
When one spouse passes away, the surviving spouse receives the higher of the two Social Security benefits, not both. For example, if the husband received $2,500/month and the wife received $2,000/month, and the husband passes away, the wife will receive a survivor benefit of
$2,500/month—but the $2,000 benefit disappears.
That’s a $2,000 monthly loss, and for many households, it’s a serious shortfall. Yes, some expenses may decrease—fewer groceries, less clothing—but others often rise. Single filing status can lead to higher income taxes, and car insurance, property taxes and healthcare costs rarely shrink.
So, what should a surviving spouse do if Social Security is their primary income?
If the couple has a substantial nest egg, that can help fill the gap. But for others, tools like annuities or life insurance can provide the predictable income or lump sum needed to maintain stability. The best time to plan for this? Before the first check disappears.
Concerned about what would happen to your income if one of you passed away?
We can help you with these decisions. Schedule your free Social Security consultation with Yeshaya Jeremias RSSA at 248-919-8193 or email yeshaya@medicaredone.com. This is a bimonthly series featured in the Health and Business editions of The Jewish Link, focusing on Social Security planning.
