Losing a spouse is one of the toughest experiences anyone can face, and it often comes with financial questions. If your spouse was receiving Social Security benefits and you’re still working, you may wonder how this affects you—especially if you’re not yet full retirement age.
One key factor to understand is the Social Security earnings test, which determines how much of the survivor benefit you can get while working. Here’s a breakdown:
What Are Survivor Benefits?
When your spouse passes away, you might qualify for Social Security survivor benefits based on their work record. The amount you’ll get depends on things like how much they were receiving, your age, and when you choose to start taking the benefits.
You can start claiming survivor benefits as early as age 60 (or age 50 if you have a disability). But if you claim them before your full retirement age (FRA), the monthly amount will be smaller. For people born in 1960 or later, FRA is 67.
How the Earnings Test Works
If you’re working and under your full retirement age, the earnings test comes into play. This test limits how much of your Social Security survivor benefits you can receive if you earn above a certain amount. Here’s how it works:
Annual Earnings Limit: In 2025, the annual limit for individuals under full retirement age is $23,400. If you make more than this, Social Security will withhold $1 from your benefits for every $2 you earn over the limit.
Higher Limit in the Year You Reach FRA: The earnings limit increases in the year you reach full retirement age. For 2025, it’s $62,160. During that year, $1 is withheld for every $3 you earn above the limit—but only for the months before you hit FRA.
No Limit After FRA: Once you reach full retirement age, you can earn as much as you want without it affecting your Social Security benefits.
An Example to Help You Understand
Let’s say you’re 62, working full-time, and earning $50,000 a year. You’re eligible for a survivor benefit of $1,500 per month ($18,000 a year).
The annual earnings limit (in 2025) is $23,400, and you’re earning $26,600 more than that ($50,000 - $23,400).
For every $2 over the limit, $1 is withheld. So, $13,300 ($26,600 ÷ 2) is withheld from your benefits.
Since your total survivor benefit for the year is $18,000, Social Security will withhold $13,300, leaving you with $4,700 for the year.
What You Should Know
You Don’t Lose Withheld Benefits Forever: Any benefits withheld because of the earnings test aren’t gone for good. When you reach full retirement age, Social Security will adjust your benefits to account for the months they withheld payments. This could mean higher monthly payments later.
Plan for Your Income: If you’re working and eligible for survivor benefits, think about how much you’re earning and whether it’s worth claiming benefits right now. In some cases, waiting might be smarter.
Choosing Between Benefits: If you qualify for Social Security based on your own work record and your spouse’s, you can only get the higher of the two amounts. You can’t collect both.
How to Make the Best Decision
Balancing survivor benefits with your income can be tricky, especially if you’re under full retirement age. This is a great time to work with a financial advisor to create a plan to make the most of your benefits and navigate this challenging time.
If you are facing, or preparing for the loss of your spouse and need help figuring out your next steps, please connect with us! We’re here to help you make confident decisions and focus on what matters most during this transition.