Thousands of widows and widowers may have been paid less than what they were legally entitled to in their benefits from Social Security, thanks to a new federal watchdog report. The errors are said to have cost surviving spouses a combined $50 million (or more), with some losing thousands of dollars during vulnerable times in their lives. The issue was caused by calculation errors and confusing instructions by the Social Security Administration, investigators say, and many of the beneficiaries impacted might not even be aware that it happened.
Benefits Were Miscalculated
According to the report, more than 8,600 widows and widowers received incorrect survivor benefit payments because of mistakes made during Social Security calculations.
Average Losses Were Significant
According to the report, each affected widow or widower missed out on roughly $5,800 in benefits they should have received. When investigators added together all the missing payments across thousands of people, the total amount of underpaid money exceeded $50 million.
Technical Formula Was Often Skipped
The problem had to do with a calculation that was required, and its name was the Widow(er)s Indexing Computation, known as WINDEX. When it wasn’t properly applied, survivor benefits were incorrectly reduced.
Widows and Widowers Were Affected
The report identified that most of the errors occurred with survivors of deceased spouse claims, particularly those submitted by the spouse before age 62.
Cost Survivors Even More
Auditors also discovered that some widows and widowers could have lost extra funds since they weren’t correctly educated on the ideal timing strategies for receiving benefits.
Survivors Could Have Lost Tens of Thousands
More than 5,000 beneficiaries likely were not aware that they had received a full explanation of their eligibility and benefits and missed out on around $114 million in combined benefits.
SSA Says It’s Taking Corrective Action
The Social Security Administration accepted the results, and it has begun to remind employees of the proper procedures for calculating survivor benefits.
Check Their Benefits Now
Financial advisors suggest that widows and widowers ask for a recalculation of their survivor benefits, particularly if their benefit claims were filed manually or their spouse passed away before age 62.
Things To Consider
If you receive Social Security survivor benefits, it may be worth reviewing your payment history and filing details carefully. Small calculation mistakes accumulate throughout time. Experts recommend keeping records of past benefit notices, understanding your claiming options, and contacting the SSA if something about your payments seems unclear or lower than expected.
