Social Security will be the primary income source for approximately 64 million individuals by 2024. Despite this, a small percentage of older adults will never qualify for Social Security benefits, which is a critical issue given how vital these benefits are for many retirees. So, why do some people miss out on Social Security benefits? Let’s explore the reasons behind this and how it impacts those who are ineligible.
Why Do Some People Never Receive Social Security Benefits?
While Social Security payments typically range from $1,000 to $4,500, certain individuals, even if they are of retirement age, never qualify. These “never beneficiaries” fall into several categories:
- Late Immigrants: Migrants who arrived in the United States after age 50 or who spent a large portion of their working years outside of the country may not have accumulated enough work credits to be eligible.
- Irregular Employment History: Individuals with inconsistent work records or those who have not contributed enough to Social Security may not meet the eligibility requirements.
- Exempt Government Employees: Some government workers are not included in the Social Security system, as their earnings are managed through a separate pension system.
- Application Errors: Thousands of retirees lose their benefits due to mistakes during the application process, potentially costing them up to $100,000 over their lifetime.
How Do “Never Beneficiaries” Cope?
Data from the Social Security Administration (SSA) reveals that 54.3% of individuals who don’t qualify for Social Security live below the poverty line, compared to just 5.8% of beneficiaries. Without the financial support provided by Social Security, many retirees struggle to meet basic needs like food, housing, and healthcare.
This underscores the vital role Social Security plays in protecting against poverty for the elderly population.
Also Read – Social Security Payments to Increase in January 2025
How Can You Avoid Being Left Out of Social Security Benefits?
While not every factor is within our control, there are steps you can take to avoid being left out of Social Security benefits:
- Ensure You Have Enough Work Credits: To qualify for Social Security, you need at least 40 work credits, which is roughly equivalent to 10 years of work. If you’re nearing retirement age and don’t have enough credits, consider working to meet the required threshold.
- Carefully Review Your Application: When it’s time to apply for Social Security, take extra care to ensure that your application is accurate. If the process feels complicated, financial advisors or SSA guides can help you avoid costly mistakes.
- Consider Delaying Retirement: Delaying your retirement can increase your benefit payments by up to 8%. However, this isn’t an option for everyone, so weigh your financial situation and health before making this decision.
If you still have time to avoid becoming one of the “never beneficiaries,” it’s crucial to review your retirement plans and ensure everything is in order. The road to retirement should be one of relaxation and financial security, so don’t delay the necessary steps to make it a reality. Time passes quickly, and the earlier you plan, the more secure your future will be.
