Did you know that 2.6 million Americans aged 60 and older will never receive Social Security benefits? It might come as a surprise, especially for those relying on these benefits for retirement income. Social Security is a critical support system for over 77 million current and future beneficiaries in the U.S., but not everyone qualifies. Knowing the eligibility requirements and potential pitfalls can help you plan ahead and avoid being left without support.
Qualifying
Social Security benefits aren’t automatically available to everyone. To qualify, you must meet certain criteria, including:
- Work History: You must work and pay Social Security taxes for a minimum of 10 years.
- Earn Credits: Over these years, you need to accumulate 40 credits, with a maximum of four credits earned per year.
In 2025, you’ll need to earn at least $1,810 per credit, and if there are gaps in your employment, they’ll count as zero in calculating your eventual benefit.
Don’t Receive Benefits
Approximately 3.3% of Americans aged 60 and over are classified as “never beneficiaries.” This group doesn’t qualify for Social Security retirement benefits. So, who ends up in this group?
- Late-Arriving Immigrants: Nearly half of the people in this category are immigrants who didn’t accumulate enough U.S. work credits.
- Infrequent Workers: About 38.9% are people who took time off from work, perhaps to care for family or raise children.
- Jobs Not Covered by Social Security: Some jobs, like certain state or local government roles and railroad industry positions, don’t pay into Social Security. Workers in these roles typically have alternative pension plans.
Die Before Claiming
Interestingly, around 1.3% of people pass away before they can claim any Social Security benefits. If you die before reaching 62, you won’t be able to claim benefits, but there are safety nets for families. For example, spouses and dependent children may be eligible for survivors’ benefits.
In cases of terminal illness, individuals can also apply for Social Security Disability Insurance (SSDI), which provides support during their remaining time.
Living Abroad
If you’re living outside the U.S., you can usually still receive Social Security benefits. However, if you reside in certain countries like Cuba or North Korea, you won’t be eligible to receive payments. There are exceptions for other countries, though, so it’s worth checking the Payments Abroad Screening Tool on the SSA website to determine your eligibility.
Divorced Individuals
Divorced individuals who haven’t earned their own Social Security benefits can still apply for spousal benefits, provided they meet specific criteria. To qualify, you must have been married for at least 10 years, and you must not have remarried.
For immigrants, the U.S. has totalization agreements with 30 countries, allowing you to combine credits from both the U.S. and your home country to qualify for prorated benefits. However, you must still have at least six U.S. credits to benefit from this agreement.
| Common Groups of “Never Beneficiaries” | Percentage |
|---|---|
| Late-Arriving Immigrants | 49% |
| Infrequent Workers | 38.9% |
| Jobs Not Covered by Social Security | 10.8% |
Securing Your Benefits
So, what can you do if you’re worried about missing out on Social Security benefits?
- Review Your Status: Regularly check your Social Security Statement to ensure your earnings and credits are accurate.
- Work Longer if Needed: If you’re short on credits, consider working longer to reach the 40-credit requirement.
- Explore Alternatives: If you can’t qualify due to a disability or lack of credits, look into Supplemental Security Income (SSI) or other government assistance programs.
- Consult a Financial Planner: If you’re concerned about potential gaps in your retirement income, a financial planner can help you identify additional savings strategies to ensure your financial security.
Planning ahead is key to ensuring you receive the benefits you deserve. By staying informed and taking proactive steps, you can safeguard your retirement future.
FAQs
How many credits do you need for Social Security?
You need 40 credits to qualify for retirement benefits.
Can immigrants receive Social Security benefits?
Yes, if they accumulate enough U.S. work credits or benefit from a totalization agreement.
What happens if you die before claiming Social Security?
Survivors’ benefits may be available for your spouse or dependent children.
Do divorced individuals qualify for spousal benefits?
Yes, if the marriage lasted 10 years and you haven’t remarried.
Can you receive Social Security while living abroad?
Usually, yes, but not in certain countries like Cuba and North Korea.
