Hi, I am still a little confused about the widow's limit and the application of the 82.5% cap. If I claim at 62 and am receiving 75% of FRA, then I get that the widow would be entitled to 82.5% instead. But I still do not understand why that would occur around 62 1/2 rather than at the survivor FRA. I understand that the reduction table shows a reduction to 82.5% around age 62 1/2, but it seems that the reduction would apply to the max benefit available (82.5%) and not to the FRA benefit amount. Taking it a step further, if the widow took the survivor benefit at age 62, the table shows it would be reduced to 80.5%. But 80.5% of what? Of the FRA, or of the 82.5% amount. I just can't wrap my head around it. Thanks so much.

Hi. If you start your benefits prior to your full retirement age (FRA), the maximum benefit rate that your spouse could receive as a survivor is the higher of your reduced benefit rate or 82.5% of your primary insurance amount (PIA). A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at FRA. So, if you start drawing your benefits early at a rate of 75% of your PIA and if you don't lose any benefits to the earnings test or voluntarily suspend your benefits between FRA and age 70, then your widow(er) could be paid a MAXIMUM of 82.5% of your PIA as a survivor.

However, if your widow(er) claims survivor benefits prior to their FRA, their actual benefit rate would then be limited to the LESSER of 82.5% of your PIA, or your PIA reduced by the normal reduction for age factor that applies to widow(er) benefits. For example, if a widow(er) claims benefits at age 60, their survivor rate would be equal to 71.5% of their deceased spouse's PIA. Therefore, if the chart that you refer to in your question says that your widow(er)'s reduced age 62 survivor rate would be 80.5%, it means 80.5% of your PIA.

One thing's for certain, filing for your benefits at age 62 would not only result in you receiving your lowest possible monthly benefit rate for as long as you live, it would also limit your widow(er) to their lowest possible potential survivor rate. Your best filing strategy depends on many different variables, so before you decide when to apply for benefits you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can choose the best overall strategy to maximize benefits for you and your spouse.

Best, Jerry