Losing a loved one is one of the most difficult experiences in life. Not only do we have to deal with the void left by their departure, but we also have to face endless paperwork and bureaucratic changes. For decades, millions of US citizens have blindly relied on social security to receive their pension. However, many people discover that the rules change when they become widowed.
However, in the last year, legislative changes have been pushed through that define who is entitled to receive money. It is no longer just a benefit that affects senior citizens, but a life insurance policy for which your family has already paid taxes. Here we explain everything you need to know to claim what is yours.
The end of unfair penalties
For years, there was a rule that everyone considered debatable: if you were a teacher, police officer, firefighter, postal worker, and had your own pension, the government would cut your widow’s benefits. It was called WEP (Windfall Elimination Provision) and GPO (Government Pension Offset).
In the eyes of many, these rules punished public servants for having spent their entire working lives serving their own communities. Many police widows discovered that they could not collect their husbands’ Social Security. However, thanks to the Social Security Fairness Act, this has changed dramatically. Thanks to this change, millions of people are now eligible to receive full Social Security payments.
If you were previously told that you did not qualify because you had a teacher’s pension, now is the time to ask again. You are now entitled to receive your full work pension and your spouse’s survivor benefit.
Who is entitled to death benefits?
Believe it or not, there may be more beneficiaries than you think. There are widows and widowers, who do not need to be elderly to collect. You can start receiving reduced benefits from age 60 (71.5% of the worker’s benefit). If you prefer to wait until you reach full retirement age between 66 and 67, then you will receive 100%.
If you have a disability, then the minimum age is 50, but this disability must have been detected before your spouse’s death or very shortly thereafter.
Although they are not taken into account, ex-spouses may also be entitled to collect on behalf of their ex. To do so, the marriage must have lasted at least 10 years, and they must not have remarried before the age of 60. Many people do not claim this money for fear of jeopardizing their current life, but this does not affect them, and it does not take away even 1/100th of the current life of the deceased’s children. It is a separate check that the government owes to the former spouse.
Unmarried children under the age of 18 are also automatically entitled to benefits. If they are still attending high school, they can collect these benefits until they turn 19. Each child generally receives 75% of the deceased worker’s benefit. However, there is a cap on this amount: the government will pay between 150% and 180% of the deceased’s basic benefit, so if you add the widow and, for example, three children, everyone’s checks will be reduced proportionally.
Blackout Period
There is a period known as the payment period, which is a financial game of chance for which we must have savings prepared. Imagine that you start young at age 40 and have a 14-year-old child. You receive benefits for caring for your child, and the child receives theirs.
However, when your child turns 16, your benefit check stops completely, and your child’s check stops at age 18. But when you turn 60, you will no longer receive any widow’s benefits. That is why we have to be prepared to face this financial obstacle.