As regular readers know, I am a fan of Ed Slott and Co.’s monthly newsletter on retirement accounts. The company, which bills itself as “America’s IRA experts,” also offers a useful newsletter on Social Security prepared by its expert in that field, Heather Schreiber.
In a recent edition of the newsletter, Schreiber discussed “caregiver benefits,” which refers to widow(er)s who are responsible for raising young children who have lost a parent. The regulations associated with caregivers are complicated, and most individuals are not well-versed.
Caregiver benefits
When an individual dies after having earned enough Social Security credits to be eligible for a retirement benefit, his or her children younger than age 18 are eligible for survivor benefits. The surviving child is entitled to 75% of the deceased parent’s full retirement benefit, known as the “primary insurance amount” or PIA.
The PIA amount is based on the wages the deceased parent earned under Social Security, and is based on what his or her benefit would have been at full retirement age. In addition to the survivor benefit available to the child of the deceased worker, the surviving parent (known as the mother’s or father’s benefit) is also eligible for 75% of the PIA if the parent is responsible for the care of the dependent child. The dependent child is eligible for a survivor benefit until age 18 or graduation from high school, whichever comes later (but not later than age 19). There is an exception if the child is disabled with a condition that began prior to age 22.
The parent of the child is entitled to a caregiver benefit as long as the child is receiving a survivor benefit. There is a limit to the total amount of combined benefits, known as family maximum, paid to the child and the caregiver parent. The limit to the amount that can be paid to the caregiver is based on their earnings. In 2025, if the caregiver earns more than $23,400 annually, Social Security will withhold $1 of benefits for every $2 of earnings that exceed $23,400. If the income is less than $23,400 then the caregiver is entitled to 75% of the PIA, subject to the family maximum. The family maximum ranges from 1.5 to 1.8 times the worker’s full payment amount, based on a four-stage formula. See the IRS publication “Retirement Benefits,” and scroll to “Family Benefits.”
Benefits for divorced individuals
As long as their marriage lasted at least 10 years, and any subsequent marriage took place after age 60, divorced individuals are entitled to a survivor benefit, even if they have remarried and their new spouse is alive. Suppose a woman’s ex-husband dies; she would be entitled to 100% of her ex’s Social Security benefits if she has reached her full retirement age.
This differs from how spousal benefits work in divorce. Let’s consider the case of a woman who divorced after 10 years of marriage and remarried after age 60. Even if her ex’s Social Security benefit exceeds that of her current marriage partner, she would not be entitled to a spousal benefit after a subsequent marriage, even after age 60. If she had been receiving spousal benefits based on her ex’s Social Security benefits, as soon as she remarries, she would no longer be entitled to that spousal benefit based on her ex’s Social Security work record.
Many individuals do not understand that even though they are not eligible for spousal benefits from an ex after remarriage, they are still entitled to a survivor benefit based on their ex’s Social Security work record. Survivors are only entitled to whichever Social Security benefit is higher, that based on their work record or the survivor benefits, but not both.
Disability income at full retirement age
Individuals who became disabled prior to reaching their full retirement age receive disability compensation as if they had already reached their full retirement age. Because of this, they are not entitled to an additional benefit when they reach their full retirement age. They receive cost-of-living adjustments each year while they are disabled. However, disabled individuals would be entitled to higher income, such as a survivor benefit, if either their new spouse or their ex dies and that Social Security benefit exceeds their disability benefit. The survivor benefit from an ex would be applicable only with a subsequent marriage after age 60. A spousal option would be applicable only if the current spouse has filed for benefits, and 50% of his or her Social Security benefit exceeds the disabled person’s benefit.
Elliot Raphaelson welcomes your questions and comments at raphelliot@gmail.com.