Money Talks News may earn commission or revenue through links in the content below. Our editorial team independently selects all products. Compensation does not influence our recommendations.
Imagine getting a note like this:
“When my husband retired, he took the bigger pension check, the one that stops when he dies. I signed the form. I didn’t think much about it then. Now he’s 74, and I lie awake doing the math. What happens to me?”
Let’s call her Carol. She’s a hypothetical, but her worry is well-founded.
I’ve been a CPA since 1981. Here’s what Carol signed away, and what she can still do about it.
Federal rules generally require private-sector pension plans to make a joint and survivor annuity the default for married retirees, with at least 50% continuing to the surviving spouse.
To get the bigger single-life payment instead, the spouse has to consent in writing, and the plan must have a notary or plan representative witness it. (1)
Then there’s Social Security. A widow can get up to 100% of her late husband’s benefit at her full retirement age for survivor benefits, but Social Security says survivor and other benefits “won’t be added together.” (2) She gets one Social Security check, not two.
Survivor checks are real money. In September 2026, about 3.5 million non-disabled widows and widowers collected an average of $1,935.32 a month from Social Security. (3)
Here are five moves Carol should make now, while her husband is alive.
1. Run the “what if” math today
Let’s put numbers on it. Say Carol’s husband gets $2,600 a month from Social Security plus a $1,500 pension. Carol collects $1,300 from Social Security on her own record. That’s $5,400 a month coming in.
If he dies first, his pension stops. Carol can step up to his $2,600 Social Security check, assuming she’s at her survivor full retirement age, but her own $1,300 goes away because the two aren’t added together. (2)
Her income drops from $5,400 to $2,600, a loss of $2,800 a month. More than half the household’s income, gone. Some bills shrink when a spouse dies. Don’t count on them shrinking by half.
One way to replace a pension that dies with its owner is life insurance on that owner. At his age, it won’t be cheap, and it may not be available, but it’s worth pricing before you rule it out.
Money's Life Insurance Comparison shows quotes from top insurers side by side, free and with no obligation, so you can see what coverage would cost.
2. Learn the survivor timing rules
Survivor benefits aren’t all-or-nothing. Social Security says payments start at 71.5% of the spouse’s benefit and increase the longer the survivor waits to apply, up to 100% at her full retirement age for survivor benefits, which is between 66 and 67. (2)
Carol should get a Social Security estimate for both of them, then figure out what she’d collect at different ages. If she’s already past her survivor full retirement age, the decision is simpler.
Quick aside — most internet financial advice comes from people who weren’t alive during the last recession. I’ve been writing about money for more than 35 years. Want rock-solid advice? Sign up for the free Money Talks Newsletter. Takes 10 seconds. No fluff. No spam.
3. Get the pension’s answer in writing
Don’t rely on memory from the retirement party. Ask the plan administrator, in writing, exactly what Carol would receive if her husband died tomorrow: any survivor payment, lump sum or death benefit.
If the answer is nothing, at least she knows the size of the hole. If it’s something, that changes the math in Step 1.
4. Get a second set of eyes
Life insurance, survivor timing, which savings to draw down first and how her taxes would change as a single filer: These pieces fit together, and it’s easy to get one wrong.
If the couple has substantial savings, a fiduciary advisor can model the “what if” with them. SmartAsset offers a free service that pairs you with up to three fiduciary financial advisors.
They can help with tax savings, investment advice, Social Security strategies, and planning gaps you’d never see alone. And first appointments are typically free. Free, expert advice now, and longer-term, the potential to add a valuable expert to your team.
The questionnaire takes about 10 minutes and asks for a phone number near the end, but you control whether and when you respond to anyone. SmartAsset provides the match, not the advice, and it’s built for people with $100,000 or more in investments. We may earn a referral fee.
5. Build a cushion from the bigger check
Here’s the silver lining: The single-life pension pays more while both spouses are alive. That extra money is the obvious place to start building Carol’s safety net.
Set aside some of every pension check in a separate account in her name, or in a joint account she can reach without delay. Every dollar saved now is a dollar she won’t have to find later.
Bottom line
Carol didn’t do anything crazy. Taking the bigger check is a legal choice, but the law doesn’t let it happen without the spouse’s written consent, witnessed by a notary or plan representative. (1)
What would be a mistake is ignoring it. The time to plan for a survivor’s income is while both spouses are here to plan together.
Run the numbers, price the insurance, save the difference. Then she can stop doing the math at 2 a.m.
Sources: 1. IRS; 2. Social Security Administration; 3. Social Security Administration, Monthly Statistical Snapshot
Add a Comment