Social Security: The Widow(er)’s Limit Provision

Social Security: The Widow(er)’s Limit Provision

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May 3, 2022
Social Security: The Widow(er)’s Limit Provision
Background
The earliest a worker can claim retirement benefits is age
Social Security is a work-based federal insurance program
62. For workers with a FRA of 67, claiming benefits at 62
that provides monthly cash benefits to retired or disabled
results in a permanent 30% benefit reduction.
workers and their family members and to the family
members of deceased workers. Workers become eligible for
Workers who claim benefits after the FRA receive a
Social Security benefits by working in Social Security–
delayed retirement credit (DRC) up to age 70. The DRC is
covered employment. Monthly benefits are based on the
2/3 of 1% per month (or 8% per year) for those born in
worker’s career-average earnings in covered employment.
1943 or later. A worker with an FRA of 67, for example,
Benefits paid to dependent family members and survivors
receives a 24% permanent benefit increase if he or she
are equal to a specified percentage of the worker’s basic
claims benefits at age 70. (See the first row in Table 1.)
monthly benefit amount (subject to a maximum family
benefit amount).
Widow(er)s
A widow(er) benefit is affected by the widow(er)’s own
Widow(er) benefits are derived from the deceased worker’s
claiming age as well as the deceased worker’s claiming age.
Social Security insurance status and lifetime covered
Widow(er) benefits can be claimed as early as 60 (or age 50
earnings. Surviving spouses, former spouses, and those with
if disabled), resulting in a wider claiming age range
a qualifying disability may be eligible for survivor benefits
compared to the retired-worker benefit. Before other
if they meet the age, marriage-duration, and other
adjustments, the widow(er) benefit is unreduced (i.e., 100%
requirements for those benefits. In December 2020, nearly
of the deceased worker’s PIA) if the widow(er) claims at
3.6 million individuals received Social Security
FRA and thereafter. The adjustment for the widow(er)’s
nondisabled widow(er) benefits. (About 96.1% were
early claiming is a constant rate of reduction reaching a
widows and 88.3% were aged 65 or older.) The average
cumulative maximum reduction of 28.5% if benefits are
monthly benefit for those beneficiaries was $1,455.46.
claimed at age 60 (or claimed between ages 50 and 60 for a
Almost 237,000 individuals received Social Security
disabled widow[er]). Unlike retired-worker benefits, there
disabled widow(er) benefits, with an average monthly
are no DRCs for widow(er) benefits. (See Table 1, the
benefit of $770.57.
column where the deceased worker’s claiming age is 67.)
Benefit Adjustments for Claiming Age
The deceased worker’s benefit claiming decision affects
The Social Security full retirement age (FRA) is the age at
that of his or her surviving spouse in two ways. First, in
which workers can first claim full (i.e., unreduced) Social
terms of a limitation, if the deceased worker started
Security retired-worker benefits. The FRA ranges from 65
receiving benefits before reaching his or her FRA, a
to 67 depending on birth year. The benefit payable at the
survivor can generally receive no larger benefit than what
worker’s FRA is the Primary Insurance Amount (PIA).
the deceased worker would have received. Second, a
survivor can inherit a DRC if the deceased worker claimed
Social Security benefits are adjusted based on the age at
benefits after reaching his or her FRA (or if the worker died
which a person claims benefits. Those adjustments are
after reaching FRA and before claiming benefits). In other
designed to provide roughly the same total lifetime benefits
words, a widow(er) cannot receive a DRC directly by
regardless of when a person begins receiving benefits,
choosing to claim widow(er) benefits after reaching his or
based on average life expectancy. The earlier a worker
her own FRA, but a widow(er) can benefit indirectly from a
begins receiving benefits (before the FRA), the lower the
DRC that was applied to the deceased worker’s PIA. (See
monthly benefit will be to offset the longer expected period
the last three columns in Table 1 for an example.)
of benefit receipt. Conversely, the longer a worker delays
Widow(er)’s Limit Provision (WLP)
claiming benefits (past FRA, up to age 70), the higher the
monthly benefit will be to take into account the shorter
If the deceased worker claimed benefits before the FRA,
expected period of benefit receipt.
and was therefore receiving a reduced benefit, the
widow(er) benefit may be reduced as well. This provision is
Retired Workers
referred to as the widow(er)’s limit provision (WLP) and
When a worker claims benefits before FRA, there is a
was enacted as part of the Social Security Amendments of
permanent actuarial reduction in monthly benefits. For each
1972 (P.L. 92-603). It is intended to prevent the widow(er)
of the 36 months immediately preceding the FRA, the
benefit from exceeding the deceased worker’s retirement
monthly rate of reduction from the PIA is 5/9 of 1% (or
benefit. It does not apply if the deceased worker died before
6⅔% each year). For each month earlier than three years
age 62. Under this provision, the widow(er) benefit is
(each month in excess of 36 months) before FRA, the
limited to the higher of (1) the benefit the deceased worker
monthly rate of reduction is 5/12 of 1% (or 5% each year).
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would be receiving if he or she were still alive and (2)
earning actuarial adjustments in the widow(er) benefit after
82.5% of the deceased worker’s PIA. Put differently:
a certain age (depending on the claiming age of the
deceased worker). It is therefore financially advantageous
WLP = maximum of {amount the deceased worker
for some surviving spouses to not postpone receipt of their
would receive if still alive OR 82.5% of the
widow(er)s’ benefits past a certain age, because doing so
deceased worker’s PIA} (see the second row in
would result in receiving a relatively lower monthly benefit
Table 1).
for a shorter period of time (that is, the lifetime benefit
would be unambiguously lower).
If the deceased worker and the widow(er) both claim
benefits before their respective FRAs, the widow(er) benefit
Among nondisabled widow beneficiaries aged 65 and older
is the smaller of (1) the WLP amount and (2) the reduced
in December 2020, about 52.7% had their benefits reduced
benefit amount based on the widow(er)’s own FRA and
because they claimed benefits before their own FRA, about
claiming age. Put differently:
22.4% had their benefits reduced because the deceased
worker claimed benefits before his or her FRA, and about
Widow(er) benefit = minimum of {WLP amount
4.2% had their benefits reduced because both the widow
OR widow(er) benefit amount reduced for early
and the deceased worker claimed benefits before their
claiming by the widow(er)}.
respective FRAs.
If deceased workers claimed benefits at age 62, they would
Other Related Factors
be entitled to a retired worker benefit equal to 70% of their
PIAs due to the actuarial reduction. Under the WLP, the
Social Security widow(er) benefits may also be affected by
widow(er) benefit would be no more than 82.5% of the
the receipt of a Social Security benefit based on the
deceased worker’s PIA. If the surviving spouse claimed the
widow(er)’s own work record, post-entitlement earnings
widow(er) benefit at ages 60-62, he or she would receive a
prior to FRA above certain thresholds, earnings from
monthly benefit ranging from 71.5% to 79.6% of the
employment not covered by Social Security, and benefits
deceased worker’s unreduced PIA (Table 1, column 2). If
for other family members.
the surviving spouse claimed benefits at age 63 or later, his
or her widow(er) benefit would be upper bounded by the
For Additional Information
WLP (82.5% of the deceased worker’s PIA).
CRS Report R41479, Social Security: Revisiting Benefits
for Spouses and Survivors.
As demonstrated by the example, the WLP both limits the
reduction the widow(er) faces due to the deceased worker’s
CRS Report R46182, Social Security and Vulnerable
early claiming and prevents the surviving spouse from
Groups—Policy Options to Aid Widows.
Table 1. Widow(er) Benefits as a Percentage of the Deceased Worker’s PIA, by Deceased Worker’s Claiming Age
The deceased worker and the widow(er) are both assumed to have a FRA of 67.
Benefits as a Percentage of the Deceased Worker’s PIA if the

Deceased Worker’s Claiming Age Is

62
63
64
65
66
67
68
69
70
Deceased Worker’s Benefits 70.00%
75.00%
80.00%
86.67% 93.33% 100.00% 108.00%
116.00% 124.00%
Widow(er) Benefit Limit
Under the Widow(er)’s
82.50
82.50
82.50
86.67
93.33
100.00
108.00
116.00
124.00
Limit Provision
Widow(er)’s Claiming Age
Widow(er) Benefits as a Percentage of the Deceased Worker’s PIA
60
71.50%
71.50%
71.50%
71.50% 71.50% 71.50%
77.22%
82.94%
88.66%
61
75.57
75.57
75.57
75.57
75.57
75.57
81.62
87.66
93.71
62
79.64
79.64
79.64
79.64
79.64
79.64
86.01
92.39
98.76
63
82.50
82.50
82.50
83.71
83.71
83.71
90.41
97.11
103.81
64
82.50
82.50
82.50
86.67
87.79
87.79
94.81
101.83
108.85
65
82.50
82.50
82.50
86.67
91.86
91.86
99.21
106.55
113.90
66
82.50
82.50
82.50
86.67
93.33
95.93
103.60
111.28
118.95
67 or later
82.50
82.50
82.50
86.67
93.33
100.00
108.00
116.00
124.00
Source: CRS based on the Social Security Act §202(e)(2)(D) and §202(f)(2)(D).
Notes: Assumes the widow(er) is nondisabled and is not entitled to retired-worker benefits. The limit on widow(er) benefits is in bold. Effects
of the retirement earnings test, the government pension offset, and family maximum benefit provisions are not included in the analysis.

Zhe Li, Analyst in Social Policy
Paul S. Davies, Specialist in Income Security
IF12091
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Social Security: The Widow(er)’s Limit Provision

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