What Happens To Your Social Security When You Lose A Spouse?
When you lose a spouse, there is a lot to deal with. You need to figure out how to live without that person and all the little things they did for you. The loss of income can be overwhelming and you may wonder what will happen to your Social Security benefits.
The amount of money you get each month will decrease to the survivor benefit amount. The survivor benefit amounts are based on earnings of the person who died or your earnings, whom ever is higher. We know this can be confusing. If you want us to take a look at your cashflow, we are here to help, 727-688-2851.
According to the Social Security Administration:
We base your survivors benefit amount on the earnings of the person who died. The more they paid into Social Security, the higher your benefits would be.
These are examples of the benefits that survivors may receive:
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Widow or widower, full retirement age or older — 100% of the deceased worker’s benefit amount.
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Widow or widower, age 60 — full retirement age — 71½ to 99% of the deceased worker’s basic amount.
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Widow or widower with a disability aged 50 through 59 — 71½%.
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Widow or widower, any age, caring for a child under age 16 — 75%.
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A child under age 18 (age 19 if still in elementary or secondary school) or who has a disability — 75%.
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Dependent parent(s) of the deceased worker, age 62 or older receive:
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One surviving parent — 82½%.
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Two surviving parents — 75% to each parent.
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Percentages for a surviving divorced spouse would be the same as above.
Fortunately if you own your home, you have other options available to help supplement the change in cashflow.
You can apply for a home equity line of credit. You can apply for cash-out refinancing, and/or you can sell your home. All of these options are available to you, but my not be what you want.
You can also apply for a Reverse Mortgage. Reverse mortgages allow you to receive a lump sum or a monthly payment depending on the available equity in your home.
Here’s how it works.
First, you need to consult with a mortgage advisor. Don’t talk to a person who only sells home equity or only sells cash out refinancing. Don’t talk to a realtor who only wants you to sell your home. Talk to a mortgage advisor who has your best interests in mind. At Debbie Cooley Mortgage, we offer free consultations, so you know your options and we can get to know each other.
Second, ask for the advisor to lay out your options for you. No single option is perfect. Each financing option will have their pros and cons. A good advisor will let you know what to expect. If the person you are talking to is trying to sell you. Stop the conversation. If the person is advising you, they will help educate you about your choices.
When one of our clients has lost a spouse, we know how tough it can be. You are dealing with the loss and financial insecurity at the same time. Our goal is to help you feel financially secure by knowing your options, so you can focus on family.
Next, you are going to make a decision. A good advisor will let you make the decision. Again, if you feel like you are being pushed in one direction, talk to someone else. If you feel like you are being pulled in a specific direction. It means you are making a good decision. Always remember, the right answer might be, do nothing. This is about making a choice that is best for you.
At Debbie Cooley Mortgage, we know the decision making process is something that shouldn’t be brushed over. You need to know the Pros and Cons of each of your options.
Now that you know what you need to do, it is time to start the mortgage process.
This involves taking your application, documenting your assets, debts, and income, and presenting your financial position. Most companies push this to other people. Not us. We will be there for you through the entire application process and will answer all your questions.
At Debbie Cooley Mortgage, we promise the best mortgage advise available.
To schedule your consultation, call 727-688-2851.