Widow(er)s: FRA & Benefit Reduction
The definition of “full retirement age” for widows and widowers is climbing, affecting individuals born in 1940 or later. Note that widow(er)s who reached age 60 during 2000 faced the first impact of this change:
| Those born in: |
Reach 60 in: | Can receive full benefits at: |
Or receive at age 60: |
Reduction fraction: |
|---|---|---|---|---|
| 1939 | 1999 | 65 years | 71.5% | 19/40 |
| 1940 | 2000 | 65 years, 2 months | 71.5% | 57/124 |
| 1941 | 2001 | 65 years, 4 months | 71.5% | 57/128 |
| 1942 | 2002 | 65 years, 6 months | 71.5% | 19/44 |
| 1943 | 2003 | 65 years, 8 months | 71.5% | 57/136 |
| 1944 | 2004 | 65 years, 10 months | 71.5% | 57/140 |
| 1945 to 1956 | 2005-2016 | 66 years | 71.5% | 19/48 |
| 1957 | 2017 | 66 years, 2 months | 71.5% | 57/148 |
| 1958 | 2018 | 66 years, 4 months | 71.5% | 57/152 |
| 1959 | 2019 | 66 years, 6 months | 71.5% | 19/52 |
| 1960 | 2020 | 66 years, 8 months | 71.5% | 57/160 |
| 1961 | 2021 | 66 years, 10 months | 71.5% | 57/164 |
| 1962 & later | 2022 & later | 67 years | 71.5% | 19/56 |
Unlike benefits for retirees and their spouses, the WIB reduction is limited to a maximum for 28.5% for all widow(er)s, regardless of full retirement age. As a result, the same maximum benefit loss of 28.5% applies for all age ranges in the chart above. In other words, as FRA rises for widow(er)s, the impact of taking benefits early actually drops!
The Reduction Fraction in the chart is used to calculate the benefit loss for a widow(er) who applies after age 60, but before reaching full retirement age. For example, a widow born on 6/15/1940 wishes to start her benefits with July 2002. Her FRA is age 65 years and 2 months: August 2005. Her reduction factor is 37: the number of months from July 2002 through July 2005. The Reduction Fraction for her date of birth is 57/124.
For ease of illustration, assume an original benefit of $1,000. Her reduced benefit is calculated as follows:
1,000 X 37 X (57/124) X .01 = 170.10 (rounded up to the nearest dime)
$1,000 – $170.10 = $829.90 benefit payable, or a reduction of 17.01%.
