While Social Security provides financial support to millions of retirees, there are specific groups of individuals who will never receive benefits. In 2024, about 3.3% of Americans aged 60 or older fall into the category of “never beneficiaries.” Let’s explore who these retirees are and the reasons why they may miss out on Social Security payments.
Who Will Never Receive Social Security?
1. Late-Arriving Immigrants
Immigrants who arrive in the U.S. after age 50 often struggle to qualify for Social Security. Since the program requires 40 work credits (approximately 10 years of employment in covered jobs), older immigrants may not have enough time to earn the necessary credits.
This group makes up around 49% of those who will never receive Social Security. Many of these individuals rely on family support or other government programs in retirement.
2. Infrequent or Unregistered Workers
Individuals who work in informal or irregular jobs often fail to accumulate enough work credits to qualify for Social Security benefits.
If your job does not consistently withhold Social Security taxes, or if you work sporadically without a formal employment record, you may fall short of the required credits. These unregistered or infrequent workers account for about 38.9% of non-recipients.
3. Non-Covered Workers
Certain public sector employees, including those who work in state or local government jobs, may be enrolled in separate pension programs instead of Social Security.
If these workers haven’t earned enough credits from other jobs covered by Social Security, they won’t receive retirement benefits from the program. This group represents around 10.8% of those who will not receive Social Security.
4. People Who Die Before Receiving Benefits
Although rare, some individuals pass away before they can claim their Social Security benefits. This accounts for around 1.3% of the population that won’t receive payments. While these individuals were likely eligible, they were unable to benefit due to their untimely death.
How Social Security Eligibility Works
To qualify for Social Security benefits, you need to accumulate 40 work credits, which equates to approximately 10 years of covered employment. Each year, workers can earn up to four credits based on their income.
In 2024, one credit is earned for every $1,730 in income. If you do not meet this requirement, you will not receive Social Security retirement benefits.
What You Can Do to Secure Benefits
If you are concerned about not qualifying for Social Security, there are steps you can take to ensure you meet the eligibility requirements:
- Check Your Work History: Review your Social Security earnings record regularly to ensure your work credits are being accurately tracked. The $1400 Direct Deposit from stimulus payments, for instance, may help you review whether you’ve received benefits or need to update your information.
- Continue Working: If you are close to retirement but don’t have enough credits, consider working a few additional years to earn the required work credits.
Conclusion
For most retirees, Social Security serves as an essential source of income, but not everyone qualifies for these benefits. Late-arriving immigrants, irregular workers, and public-sector employees who don’t pay into Social Security are the most at-risk groups.
Planning ahead, reviewing your work history, and ensuring you meet the credit requirements can help secure your financial future in retirement.
