Social Security benefits play a vital role in supplementing retirement income for millions of Americans. Yet, surprising as it may seem, around 2.6 million people aged 60 and above in the United States will never receive Social Security benefits.
These “never beneficiaries,” as the Social Security Administration (SSA) calls them, make up 3.3% of the 60+ population. This number may seem small, but it’s still a considerable portion of retirees who miss out on these crucial benefits.
In this article, we will explore why some people are never beneficiaries, who is at risk, and what steps you can take to ensure that your Social Security benefits are locked in for your golden years.
What Are Never Beneficiaries?
A “never beneficiary” refers to someone who is not eligible to receive Social Security retirement benefits. The main reason? Not having enough credits. To qualify for Social Security benefits, you must have worked for at least 10 years, earning a total of 40 credits.
In 2024, you will need to earn at least $1,730 for one credit, and you can earn up to four credits per year. Your final benefit is based on your highest 35 years of earnings. If you have any years without earnings, those years are calculated as zero and will lower your overall benefit.
For those who do not meet this 40-credit requirement, the result is not receiving Social Security retirement benefits—putting them in the “never beneficiary” category.
Who Are the Never Beneficiaries?
There are a few common groups that often fall into this category, including:
- Late-Arriving Immigrants: According to the SSA, nearly 49% of beneficiaries are immigrants who came to the U.S. later in life and didn’t work long enough in the country to accumulate 40 credits.
- Infrequent Workers: Another large portion, 38.9%, consists of people who worked part-time or took extended breaks from the workforce, such as to raise children or care for family members. These workers may not have reached the 40-credit requirement.
- Jobs Not Covered by Social Security: Some jobs, especially state and local government jobs, do not participate in the Social Security system. While this might seem concerning, these workers often have access to alternative retirement benefits, such as pensions, that replace Social Security.
- Workers in the Railroad Industry: People who work in the railroad industry also don’t receive Social Security, but they are covered under the Railroad Retirement Board, which provides similar benefits.
- People Who Pass Away Early: In rare cases (1.3%), individuals pass away before reaching the minimum age to claim Social Security, which is 62. These people, unfortunately, never have the chance to collect their benefits.
Additionally, U.S. citizens living in certain foreign countries like North Korea and Cuba are not eligible to receive Social Security payments, though there are some exceptions for other countries.
What Can You Do to Secure Your Social Security Benefits?
If you’re concerned about not receiving Social Security benefits, here are some steps you can take to ensure you lock in your eligibility:
- Earn Enough Credits: The most important factor in receiving Social Security is accumulating 40 credits. If you’re close to this threshold but not there yet, consider working a few more years to meet the requirement.
- Look for Totalization Agreements: Immigrants from countries with totalization agreements (including 30 countries such as Canada, Germany, and Japan) can combine their U.S. work credits with credits from their home country to qualify for benefits. However, you still need to earn at least six U.S. credits to take advantage of this.
- Spousal Benefits: Even if you do not qualify for your own benefits, you may be eligible for spousal benefits based on your spouse’s work history, especially if your marriage lasted at least 10 years. This can be an important option for individuals who were stay-at-home spouses or took time off work to care for family members.
- Check Your Eligibility: If you’re uncertain whether you qualify, check your eligibility on the SSA website. The SSA offers tools like the Retirement Estimator, which helps you project your future benefits and plan your retirement.
Must Read: Big News for U.S. Retirees: COLA Increase Boosts Social Security Benefits!
Summary
Social Security is a vital safety net for many retirees, but not everyone qualifies. If you are concerned about missing out on these benefits, take action now.
Make sure you meet the work credit requirements, check if you are eligible for spousal benefits, and explore any other options that may apply to your unique situation. The earlier you plan, the better you can secure your future.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.
