Did you know that in America, there are 2.6 million people aged 60 and over who will never receive Social Security benefits? If you’re planning to rely on Social Security to bolster your retirement income, you’re certainly not alone.
With over 77 million current and future beneficiaries in the United States, many count on this crucial support in their golden years. However, not everyone can expect to receive a monthly Social Security check.
Social Security statistics unveiled
According to the Social Security Administration (SSA), about 3.3% of Americans aged 60 or older are classified as “never beneficiaries,” meaning they do not receive SSA retirement benefits. This statistic might prompt you to wonder if you should be concerned about your own eligibility.
To qualify for Social Security benefits, certain criteria must be met:
- You must have worked and contributed to SSA taxes for a minimum of 10 years.
- During this period, you need to earn a total of 40 credits (up to 4 per year).
Understanding these requirements is essential in ensuring that your benefits are secure. By staying informed and proactive, you can take the necessary steps to guarantee that you’re covered when it matters most.
To ensure you’re on track to receive SSA benefits:
- Regularly review your Social Security Statement to verify your earnings and credits.
- Consult with a financial advisor to plan for any potential gaps in your eligibility.
- Consider additional savings options to supplement your retirement income if needed.
In 2025, the journey to earning SSA credits requires you to earn at least $1,810 per credit, with the possibility of accumulating up to four credits annually.
Your eventual Social Security benefit is calculated based on your highest 35 years of earnings. Any years without work will be factored in as zero, impacting your benefit calculation.
Understanding the “Never Beneficiary” Status
Becoming a “never beneficiary” occurs when you haven’t earned enough credits throughout your working years to qualify for Social Security benefits. This situation can be challenging, especially for certain groups:
Who Might Become a Never Beneficiary?
- Late-Arriving Immigrants: Nearly half of the never beneficiaries, about 49%, are older immigrants who have not acquired sufficient credits to qualify.
- Infrequent Workers: Individuals who have taken time off work, perhaps to raise children, represent 38.9% of this group. These individuals often struggle to accumulate the necessary credits.
- Jobs Not Covered by Social Security: If your employment is in a field not covered by Social Security, you fall into the category of 10.8% of never beneficiaries, which means you won’t receive any benefits.
When it comes to Social Security, many state and local government employees find themselves in a unique situation. While these workers don’t pay Social Security taxes, it’s not necessarily a disadvantage. Instead of receiving Social Security benefits upon retirement, they often benefit from a pension provided by their employer.
Similarly, employees in the railroad industry don’t receive Social Security benefits. Instead, they are covered by the Railroad Retirement Board, as long as they have accumulated more than 10 years of service.
Understanding Eligibility and Timing
Only a small percentage of beneficiaries, about 1.3%, pass away before receiving any Social Security benefits. It’s important to note that you can’t begin claiming Social Security until you reach the age of 62.
However, to receive the full benefit amount, you must wait until your full retirement age, which ranges between 66 and 67, depending on your birth year.
What Happens If You Pass Away Before Claiming?
If someone dies before reaching the age of 62, they won’t be able to claim their Social Security benefits. However, there are provisions in place to support families. Here are some key points:
- Individuals with terminal illnesses may qualify for Social Security Disability Insurance (SSDI).
- Survivors’ benefits may be available for spouses and dependent children, providing financial support in difficult times.
Many people are surprised to find that certain groups will not receive their SSA benefits. Among these are U.S. citizens residing in specific foreign nations.
While it is typically possible to receive your SSA check while living abroad, there are some exceptions. Unfortunately, if you’re residing in countries like Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, North Korea, Tajikistan, Turkmenistan, or Uzbekistan, you may not be eligible.
Nevertheless, there are exceptions for some of these countries, though not for Cuba and North Korea. To determine your eligibility, you can use the government’s Payments Abroad Screening Tool.
Securing Your Social Security Benefit
Wondering how to ensure you receive your benefit? Here are a few strategies you might consider:
- If you haven’t accumulated the required 40 credits, think about delaying retirement until you have enough to qualify.
- If you’re unable to work due to a disability, explore other benefits, like SSI, that might be available to you.
Divorced Individuals and Social Security Benefits
If you’re divorced and find that you’re not eligible for your own retirement benefit, you may still qualify for spousal benefits. To be eligible, your marriage must have lasted at least 10 years, and you must not have remarried.
Applying for Spousal Benefits can be a strategic move without the need to inform your ex, and it won’t affect their benefits at all.
Eligibility for Immigrants
For immigrants lacking sufficient U.S. credits, there’s still hope if you hail from one of the 30 countries with a totalization agreement with the U.S. This arrangement allows you to combine your U.S. credits with prorated benefits from your home country.
Nonetheless, you must have at least six credits earned in the U.S. If you haven’t reached this threshold, consider working long enough to acquire those credits.
Ensuring Your Social Security Eligibility
If you’re uncertain about your Social Security eligibility—perhaps due to being an infrequent worker or a recent immigrant—what steps can you take to secure your benefits?
Steps to Secure Your Benefits
- Check Your Eligibility: Begin by visiting the SSA website to verify your eligibility.
- Use the SSA Retirement Estimator: This tool is invaluable for planning your retirement and calculating potential payments.
Taking these proactive steps ensures you’re well-prepared for your retirement future. Source: https://www.ssa.gov/policy/docs/population-profiles/never-beneficiaries.html
