A 63-year-old widow in Florida recently posted on Reddit seeking help as she confronts the emotional and financial challenges of caregiving while navigating Social Security. Still working and earning $56,000 a year, she had planned to claim her widow’s benefits at full retirement age (67), switch to her own benefits at 70, and maximize her monthly payout. But those plans are now at risk.
“It’s become a race as to whether I can make it to 65 to claim Medicare and retire early on widow benefit,” she wrote.
The reason? She’s now the primary caregiver for her sister, who receives $2,000 a month in Social Security and a $700 pension. To preserve those funds for future facility care, the widow has avoided using her sister’s income and instead taken on all caregiving responsibilities herself—unpaid.
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This story delves into the convergence of Social Security policy, caregiver budget stresses, and state-specific caregiver services, offering a blueprint for others faced with such issues.
The widow’s dilemma: High earnings vs. Caregiving demands
Though survivor benefits are available from age 60, claiming them before full retirement age leads to a permanent reduction—about 28.5% at age 63. Worse, her $56,000 income would trigger the Social Security earnings test, which reduces benefits by $1 for every $2 earned over $23,400 in 2025. This could eliminate most or all of her monthly check if she claims now and continues to work.
Social Security users responding to her post recommended she speak with a benefits specialist and emphasized that her high-earning years now have only a modest effect on her ultimate payout. Others suggested part-time work, drawing survivor benefits earlier, or using those funds to pay for outside caregiving help—though this would still reduce her monthly benefit due to the earnings cap.
Her caregiving responsibility introduces a second challenge. Although her sister’s $2,700-a-month income goes into facility care in the future, the physical and emotional drain of caregiving might rule out retirement before she had hoped. That gives a “race” to age 65 when Medicare eligibility will pay ahead for health-care expenses, but early retirement could cost more lifetime Social Security benefits.
Survivor benefit rules and the earnings test
Widows can claim survivor benefits as early as age 60, but doing so before full retirement age (67, for someone born in 1962) results in a permanent reduction. If her late husband’s benefit was $2,000 a month, she would receive about $1,430 by claiming at 63.
Her $56,000 salary exceeds the 2025 earnings limit by $32,600, resulting in a $16,300 penalty—effectively canceling out most or all of a $17,160 annual survivor benefit. In other words, continuing to work full time while claiming survivor benefits now would be financially impractical.
| Claiming Age | Percentage of Full Benefit | Monthly Benefit (based on $2,000 FRA) | Permanent Reduction |
|---|---|---|---|
| 60 | 71.5% | $1,430 | $570 less |
| 61 | 76.3% | $1,526 | $474 less |
| 62 | 81.0% | $1,620 | $380 less |
| 63 | 85.8% | $1,716 | $284 less |
| 64 | 90.5% | $1,810 | $190 less |
| 65 | 95.3% | $1,906 | $94 less |
| 66 | 98.3% | $1,966 | $34 less |
| 67 (FRA) | 100% | $2,000 | None |
Caregiver burden and financial trade-Offs
The caregiver role of a widow incurs indirect economic burdens in the form of decreased productivity, depletion of retirement savings, and possible health consequences. Researchers have determined that almost 42% of caregivers give care for 2–5 years, with 74% indicating that care services allowed them to continue caregiving for more extended periods. Yet, without formal compensation, caregivers exhaust personal funds or delay career progress.
By going without her sister’s $2,700 monthly income ($32,400 yearly), the widow is trying to save for future care in institutions. This strategy enhances long-term security but can worsen short-term financial stress, especially if caregiving demands increase.
State programs providing caregiver stipends
Several states pay family caregivers in the form of Medicaid waivers or state programs, although eligibility and types of stipends are highly variable:
- Delaware: Compensates parents and guardians for personal care services through Medicaid waivers, up to 40 hours a week.
- Florida: Allows paid care for kids under the iBudget Waiver and provides training in medical care like tube feedings.
- Iowa: Compensates parents/guardians of children under supported living and medical day care waivers.
- Kansas: Allows parents to give personal care and nursing services under the Technology Assisted and Brain Injury Waivers, up to 40 hours a week.
- Kentucky: Pays attendant care under certain waivers, with CPR training and hour restriction.
- Louisiana: Pays caregivers under Medicaid waivers under extreme situations.
They usually make the caregivers fulfill training requirements or prove that they receive no other care assistance. Indiana canceled its paid caregiver program in 2024, but litigation could revive some of the benefits.
If the widow continues working until 67, her survivor benefits would reach 100% of her late spouse’s amount. Switching to her own retirement benefit at 70 would then capitalize on delayed retirement credits, increasing her monthly payment by 24% above her full retirement amount. For example, a $2,500 full retirement benefit would grow to $3,100 monthly at 70.
Read more: Social Security: What is the Full Retirement Age (FRA) if you were born between 1943 and 1954?
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