B—Survivor Income

The sudden loss of income at the death of a breadwinner can be devastating to a surviving family.

While many surviving families can expect to receive benefits from Social Security, it is probably not advisable for them to rely on the system for the greater part of their financial security. For example, in 2024, the maximum monthly survivor’s benefits available under Social Security was $5,772. Note that a surviving family is entitled to payments provided one or more children are under age 16. Once all children are 16 or over, no Social Security benefits are available until the surviving spouse is age 60. This period between the youngest child’s age 16 and spouse’s age 60 is often referred to as the Social Security “blackout period.” In July, 2024, approximately 5.8 million people were receiving survivor benefits which averaged $1,509.50 per recipient. https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/.

A survivor income plan can assure that continuing income will be available and is based upon a written agreement between the employer and the employee.