By what percentage are widow benefits reduced for individuals at age 60?

Widow benefits are designed to provide financial support to surviving spouses after the death of their partner. When a widow or widower begins to receive these benefits before reaching the full retirement age, which is typically between 66 and 67 depending on the year of birth, the amount received is subject to a reduction.

For individuals who start receiving widow benefits at age 60, the reduction is set at approximately 28.5%. This percentage is based on the actuarial calculations made by the Social Security Administration to adjust for the fact that benefits are being claimed earlier than the full retirement age. It reflects the longer time that beneficiaries are expected to receive these benefits, which necessitates a lower monthly payment to ensure that funds are available over the longer duration.

Understanding this percentage is important for financial planning, as it helps individuals assess their income needs and determine the optimal age for claiming these benefits based on their personal circumstances.