Social Security Myths That Could Cost You Money

A widows pension is the common name for Social Security survivor benefits, monthly payments provided to certain family members after a worker who paid Social Security taxes passes away.These benefits are based on your spouses earnings record and work history, not your income. In many cases, they can continue for the rest of the surviving spouses life if eligibility requirements are met.To qualify, the deceased spouse must have earned enough Social Security work credits. While many workers reach full eligibility with about 40 credits (roughly 10 years of work), the exact requirement depends on their age at death; younger workers may qualify with fewer credits.A Brief History of Survivor BenefitsSocial Security survivor benefits were introduced in 1939, expanding the program beyond retirement income.These updates were designed to: Provide financial support to families after the loss of a wage earner. Extend benefits to spouses and dependent children. This marked the first step toward Social Security becoming a broader safety netnot just a retirement program.Who Qualifies for Survivor Benefits in 2026?Eligibility depends on your relationship to the deceased and your age. For surviving spouses, the general rules include:Basic EligibilityYou may qualify if: You are age 60 or older. You are age 50 or older with a qualifying disability (that began within seven years of your spouses death). You are caring for the deceaseds child who is under age 16 or has a disability (no minimum age requirement) . Additional Considerations You typically must have been married for at least nine months (with some exceptions). Divorced spouses may qualify if the marriage lasted at least 10 years. If you remarry after age 60 (or age 50 if disabled), you can still receive survivor benefits. Coordination With Your Own BenefitsIf youre eligible for both: A survivor benefit, and Your own Social Security retirement benefit You typically receive the higher of the two, but you may have the option to switch between them depending on timing.How Much Could You Receive?The amount varies based on: Your spouses lifetime earnings. The benefit they were receiving (or eligible to receive). Your age when you claim. In general: At full retirement age, you can receive up to 100% of your spouses benefit. At age 60, you may receive as little as 71.5%, with reduced payments for claiming early. There may also be a one-time lump-sum payment of $255 available to eligible survivors.When Should You Claim?One of the most important decisions is when to begin benefits. You can claim as early as age 60 (or 50 if disabled). Waiting until your full retirement age (typically 6667) can increase your monthly payment. Claiming early permanently reduces your benefit. If youre still working, keep in mind: Benefits may be temporarily reduced if your earnings exceed annual limits before full retirement age . Related: Maximizing Social Security Benefits for Middle to Upper-Income RetireesHow to Apply for Survivor BenefitsBefore applying, the Social Security Administration (SSA) must be notified of your spouses death. In many cases, the funeral home handles this step.To apply: Call Social Security at 1-800-772-1213, or Visit your local office. Applications cannot currently be completed fully online.You may need to provide: A death certificate. Marriage documentation. Social Security numbers. Tax forms or proof of earnings. For more details, you can visit the official SSA overview: Learn about Survivor BenefitsFinal ThoughtsLosing a spouse is never easy, and financial concerns can add to that stress. Survivor benefits are designed to provide some stability during a difficult time.Understanding how widows pensions workespecially eligibility rules, timing strategies, and benefit optionscan help you make more informed decisions about your financial future.Want more? Check out our blog, Social Security in 2026: How Far Will Your Benefits Really Go?Were Here for You!Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing. Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc.  Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).  Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Investing involves risks including possible loss of principal. 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Retirement & Taxes Under the New OBBBAThe One Big Beautiful Bill Act (OBBBA), passed in 2025, changes several tax rules that directly affect retirees. Some of these updates create opportunities to lower your tax bill, while others may require careful planning to avoid losing new benefits.Key Changes for Retirees Bigger Deduction for Seniors Retirees age 65+ now receive an extra $6,000 deduction (per person). This reduces taxable income, but begins to phase out once income exceeds $75,000 (single) or $150,000 (married). Social Security Relief While Social Security taxation rules remain, OBBBAs new deductions mean that many retirees will owe little to no federal tax on their benefitsprovided income stays under phaseout limits. Retirement Accounts Traditional IRA/401(k) withdrawals remain taxable, with required minimum distributions (RMDs) at age 73. Roth withdrawals continue to be tax-free if rules are met. Roth conversions may be more attractive, especially in lower-income years. Medicare Costs Income still drives Medicare premiums. Poorly timed withdrawals could increase costs. Estate & SALT Deductions The federal estate tax exemption is increased (currently $15M individual / $30M married, indexed). State & Local Tax (SALT) deduction cap temporarily raised to $40,000 for many households.Planning Opportunities Manage income carefully to stay under phaseout limits for the new senior deduction. Consider Roth conversions in lower-income years to reduce future taxable withdrawals. Use Qualified Charitable Distributions (QCDs) to meet RMDs without raising taxable income. Review estate plans under the new exemption levels.The Bottom LineThe OBBBA brings real tax relief to many retireesbut only with the right strategy. Higher-income retirees may see deductions phase out quickly, so planning is key.Now is the time to review your retirement tax plan.Call Senior Tax Advisory Group at 719-596-4844 to schedule your review and see how these new rules may affect your income, Social Security, and legacy.

Will My Disability Benefits Change When I Turn 65?Turning 65 years old has traditionally been associated with retirement and enrollment in federal benefit programs. However, people with disabilities may already be receiving federal benefits through Social Security, Medicaid, and Medicare before they turn 65.Disabled individuals who qualify for Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) may wonder what happens to their disability benefits when they reach retirement age.The short answer is that their benefits dont end, and the amount they received prior to turning 65 remains the same. But given the complexity of the federal benefits system, there may be exceptions to these general rules on a case-by-case basis that need to be discussed with a disability attorney.Age 65 and Full Retirement AgeFor most of Social Securitys history, full retirement age, or the age at which someone could receive the maximum amount of Social Security retirement benefits based on their work history, was 65 years old.Reforms to Social Security in the 1980s raised the full-benefit retirement age to between 66 and 67 years old, depending on when somebody was born. For anybody born in 1960 and later, full retirement age is now 67.When Does Social Security Disability Convert to Regular Social Security?The Social Security Administration (SSA) does not permit a person to receive both disability and retirement benefits on one earnings record at the same time.For anyone receiving SSDI payments, their monthly disability benefit automatically switches to Social Security retirement upon reaching full retirement age. Again, this is age 66 or 67 for most people.When this switch takes place, the monthly payment amount stays the same.How Long Do Social Security Disability Benefits Last?SSDI lasts for as long as the recipient has a disabling condition and is unable to work, or until they reach retirement age, at which time the disability benefit converts to a retirement benefit.Social Security performs a continuing disability review (CDR) of SSDI recipients every three to seven years.Turning 65 or reaching full retirement age does not trigger this review. And once SSDI benefits change over to retirement benefits, there is no need for a medical review, since a recipient doesnt have to be disabled to receive Social Security old age benefits.SSI and Retirement AgeA person may qualify for SSI with a disability if they have little or no income and resources and are age 64 and younger, or they have little or no income or resources and are age 65 and older.Qualifying for SSI does not require a work history the way that SSDI does. So, someone can qualify for SSI without ever having worked. But because the SSI benefit payment is not tied to a work history, SSI benefits do not convert to retirement benefits upon reaching full retirement age.If someones receiving SSI for a disability, their benefits can continue after they reach retirement age as long as they still meet the programs financial requirements.Disabled SSI recipients are subject to a CDR at least once every three years, or every five to seven years. During the CDR, the SSA also reviews a recipients income and resources to ensure they are still eligible for and receiving the correct SSI benefit amount.Disability, Medicare, and Turning 65Medicare eligibility ordinarily begins at age 65. But people under age 65 whove gotten SSDI benefits for at least 24 months can start receiving Medicare.SSDI recipients automatically get Medicaid Part A and Part B, collectively known as Original Medicare, after receiving their 25th month of benefits. They can choose at that time to decline or keep Part B, which covers services from doctors and other health care providers. They must typically keep Part A, the portion covering inpatient hospital care.When individuals with qualifying disabilities turn 65 and gain age-based Medicare eligibility, they dont have to re-enroll or complete additional paperwork to continue receiving health care benefits.Turning 65, though, amounts to a secondary initial enrollment period. This could be a good time to re-evaluate current Medicare coverages and make changes.For example, a disabled Medicare recipient may have declined Part B coverage when they first enrolled but decide to keep this coverage when they enroll again at age 65. They can also choose to enroll in another Medicare program, such as Part C or D.Disability, Medicaid, and Turning 65Medicaid is government health care for people with limited income, including those with disabilities.In many states, SSI recipients automatically qualify for Medicaid. Medicaid eligibility thats based on receiving SSI should not be impacted by turning 65, but there could be considerations related to special needs trust funding at age 65.Medicaid covers some costs that Medicare does not, such as long-term care. Special needs trusts can help to preserve a beneficiarys access to benefits like SSI and Medicaid. But the window of time to fund a first-party special needs trust closes at age 65.Some people are also eligible for both Medicaid and Medicare. They may be able to enroll in a Dual Eligible Special Needs Plan, a type of managed care plan that helps to coordinate coverage for those with complex medical needs.Work With a ProfessionalSSDI, SSI, Medicare, and Medicaid all have complex rules that may vary by state. Whether youre turning 65 or reaching retirement age, contact Ashley Day at 251-277-3377. She can provide answers and assist with any necessary paperwork.