Does everyone get Social Security? No. Still, American workers who will not qualify for Social Security retirement benefits are relatively rare. It’s important to know if you are one of them, so you can secure other sources of income or determine whether it’s possible for you to become eligible. What follows are eight of the most common categories of workers who lack Social Security eligibility and are thus are not entitled to benefits.
Key Takeaways
- Some American workers do not qualify for Social Security retirement benefits.
- Workers who don't accrue the requisite 40 credits (roughly 10 years of employment) are not eligible for Social Security.
- Some government and railroad employees are not eligible for Social Security.
- American expatriates retiring in certain countries—and some retired immigrants to the U.S.—can't collect Social Security benefits.
- Divorced spouses married for fewer than 10 years cannot claim benefits based on the earnings of their ex-spouse.
1. Workers With Too Few Social Security Credits
Can you get Social Security if you never worked? No, not based on your own record. (You may be eligible as a spouse, ex-spouse, or survivor, however.) To collect Social Security retirement benefits based on your own record, you must have performed enough work. TheSocial Security Administration (SSA)defines enough work as earning 40 Social Security credits. An individual receives one credit for each $1,730 in income in 2024, and they can earn a maximum of four credits per year. Forty credits are roughly equal to 10 years of work.
You’ll need 238.62 hours of work in 2024 to receive onecredit toward Social Security if you earn the federal minimum wage of $7.25 an hour. You can earn the maximum credits per year by working just 19 hours a week for 50 weeks at this wage, allowing yourself a two-week vacation.Even those who work part-time so they can attend school or care for a child, or those who work part-time because they cannot find full-time work, can amass Social Security credits.
Earned credits are accrued over a person's lifetime, and they never expire, so anyone who has left the workforce with close to 40 credits might consider going back and doing the minimum additional work they need to qualify. You can check the number of credits you have so far by opening a Social Security account on the Social Security website and downloading your Social Security statement.
That said, you may qualify based on your spouse's record. The spousal benefit can be as much as 50% of the worker's benefit, depending on the spouse's age at retirement and if the spouse is eligible for retirement benefits based on their own earnings record. The Social Security Administration has an online calculator that helps determine benefits for spouses.
2. Workers Who Die Before Age 62
The minimum age to start claiming Social Security retirement benefits is 62. If someone dies prematurely, then dependent children and spouses may be entitled to survivor benefits. At age 60, for example, widows and widowers can begin receiving Social Security benefits based on their deceased spouse’s earnings record (disabled spouses can start at age 50).
Terminally ill patients can apply for Social Security Disability Insurance (SSDI), which means they will still receive some benefit from their contributions to the system.
If you do not qualify for Social Security payments, you need to ensure that you have sufficient income to support your lifestyle in retirement.
3. Certain Divorced Spouses
Divorced people can be entitled to collect Social Security benefits based on the earnings of an ex-spouse. Often these are full-time homemakers or stay-at-home parents who didn’t work. To get the benefits, they must be single, 62 or older, and have earned less in benefits based on their own work record than that of their ex. If the marriage lasted for fewer than 10 years, they are not eligible to claim any spousal benefits.
4. Workers Who Retire in Certain Foreign Countries
U.S. citizens who travel to—or live in—most foreign countries after they retire can usually receive Social Security benefits. However, if that country is Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, North Korea, Tajikistan, Turkmenistan, or Uzbekistan, then the government will not send them Social Security payments.
Exceptions may be made for all of these countries except Cuba and North Korea. The government’s Payments Abroad Screening Tool is an easy way to check if you will be able to continue receiving Social Security benefits while living abroad or if restrictions will apply.
5. Certain Noncitizens
Certain noncitizens and legal immigrants who have earned 40 Social Security work credits in the United States are eligible to receive Supplemental Security Income (SSI) benefits. Immigrants who do not have enough U.S. credits but who come from one of the 30 countries with whom the United States has Social Security agreements, also known as totalization agreements,may qualify to receive prorated benefits.
These benefits are based on their work credits earned abroad combined with their U.S. work credits, an arrangement that is particularly helpful for older immigrants who are not likely to accumulate 10 years of work in the United States before retiring. Workers who have not earned at least six U.S. credits, however, cannot receive payments under totalization agreements.
6. Certain Government and Railroad Employees
There are some jobs that don’t pay into the Social Security system. Federal government employees hired before 1984 are included in the Civil Service Retirement System (CSRS), which provides retirement, disability, and survivor benefits. These workers did not have Social Security taxes deducted from their paychecks and thus are noteligible to receive Social Security benefits.
They may still qualify if they have earned benefits through another job or a spouse. However, in these cases, CSRS pension payments may reduce Social Security payouts. Government workers who are covered by the Federal Employees Retirement System (FERS), which replaced CSRS, are eligible for Social Security benefits.
Most state and local employees have Social Security protection under a federal Section 218 agreement; however, some of these workers—including those who work for a public school system, college, or university—will not receive Social Security benefits if they do not pay Social Security taxes. They generally receive pension benefits from their employers.
Railroad Employees
Some railroad employees are not covered by the Social Security system. Workers with at least 10 years of service in the railroad industry (or at least five years after 1995) have their retirement benefits covered through the Railroad Retirement Board. The RRB is an independent federal agency that administers various employment benefits for railroad industry employees and their families.
Workers with fewer than 10 years of service in the railroad industry (or fewer than five years after 1995) do not receive retirement benefits through the RRB. Instead, their accounts are transferred into the Social Security system, and they become eligible for Social Security benefits after meeting Social Security benefit requirements.
$3,822
The most that someone reaching full retirement age in 2024 can get in Social Security benefits per month.
7. Self-Employed Tax Evaders
Self-employed workers pay self-employment tax to cover both their own and the employer’s portion of Social Security contributions. The tax is calculated and paid each year when self-employed workers file their federal tax returns. Those who do not file tax returns do not pay Social Security taxes, unlike employees whose employers withhold and remit their Social Security taxes from each paycheck.
If you have no record of paying into the system, you will not receive payouts. If you have not reported income and evaded taxes for a lifetime, then you will receive no Social Security benefits.
8. Certain Immigrants Over Age 65
Retired people who immigrate to the United States will not have the 40 U.S. work credits that they need to qualify for Social Security benefits. One way to rectify this problem is to earn six work credits in the United States and receive prorated U.S. benefits combined with prorated benefits from their former country under a totalization agreement.
This solution also makes sense for workers who do not have enough benefits in their home country to qualify for that country’s equivalent of Social Security payments.
Older immigrants who do not qualify for U.S. Social Security and whose countries’ laws allow them to receive benefit payments while residing abroad can claim their Social Security or pensioner’s benefits while living in the U.S.
What Is the Social Security Tax Cap?
For earnings in 2024, the cap is $168,600. Earnings above this amount will not be taxed for Social Security.
Is It Better to Take Social Security at 62 or 67?
You are first eligible to start taking Social Security benefits at age 62. However, the longer you wait, the more benefits you will receive. You will receive full benefits at your full retirement age, but the longer you wait until age 70, the more you will receive in benefits. It's worth it to wait if you can.
At What Age Is Social Security No Longer Taxed?
Social Security benefits are always taxed. There is no age at which Social Security benefits stop being taxed. If your income exceeds a certain level, you will be taxed for Social Security.
The Bottom Line
Almost everyone who reaches retirement age in the United States receives Social Security benefits when they stop working. However, those who have spent little time in the U.S. workforce, whether due to full-time homemaking or working abroad, may not qualify under their own names. (Some could qualify for survivor benefits or spousal benefits if their spouse qualifies for payments.) Some government workers are also not eligible. Fortunately, some people who do not currently qualify can still find a way to do so.
