Most American workers look forward to retiring, and receiving a monthly Social Security check to get ahead financially is an important part of that plan.
Some plan on using that check to supplement their savings, while others count on it to make ends meet. But before you start factoring Social Security into your retirement budget, you need to know if you qualify to receive it.
Here are nine categories of American citizens who don't qualify for Social Security payments in retirement.
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1. Americans who worked too few years to earn 40 work credits
To receive Social Security benefits, you must have earned a certain number of “work credits” throughout your working life.
Typically, you’ll earn one credit for every financial quarter you work, which means you can earn up to four credits a year. To earn your credits in 2024, you must make at least $1,730 per quarter, but the minimum earnings requirement changes from year to year.
Since you can earn four credits a year, most Americans must work for at least 10 years to be eligible to receive Social Security benefits in retirement.
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2. Some ex-spouses who were married for fewer than 10 years
Many ex-spouses still qualify to receive at least some of the spousal benefit they were entitled to based on their former spouse’s working income.
However, if you were married to someone who qualifies for Social Security but divorced before you’d been married for a decade, you likely won’t qualify for the spousal benefit.
There are some exceptions to this rule, though, including ex-spouses who may receive spousal benefits from their former partners if they're taking care of a child they had together.
3. Railroad workers who get their retirement through the Railroad Retirement Board
If you worked in the railroad industry for 10 years before 1995 or for five years after 1995, you likely qualify to receive retirement benefits through the Railroad Retirement Board (RRB).
This federal agency’s benefits plan replaces Social Security benefits. However, your RRB retirement credits will carry over into Social Security if you worked for fewer than 10 or five years (depending on your hiring date).
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4. Americans who never worked
If you didn’t work between the start of adulthood and retirement age, you didn’t contribute any portion of your paychecks to the Social Security tax. That means you won’t get any of that money back in a monthly stipend once you retire.
This rule doesn’t apply to non-working spouses of working adults. For instance, if you were a stay-at-home parent while your spouse worked and contributed to Social Security, you likely qualify for spousal Social Security benefits based on your partner’s income.
5. Immigrants who arrived in America after age 50
Some immigrants may not earn enough work credits to qualify for Social Security, depending on when they immigrated to the United States.
However, governments in 30 countries have totalization agreements with the United States government, meaning the two governments coordinate retirement benefits for immigrants who move to the United States and vice versa.
Don’t assume that you won't receive retirement benefits because you immigrated after a certain age. Instead, talk to your lawyer and financial advisor about which benefits you can expect, if any.
6. Americans who immigrate to one of nine restricted countries
Due to government sanctions and other restrictions on foreign governments, Americans who retire to one of 10 foreign countries can’t receive monthly Social Security payments.
Exceptions are available to qualifying immigrants in seven of the nine countries, including Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan, Kazakhstan, Belarus, and Azerbaijan.
Exceptions cannot be made for American immigrants to North Korea or Cuba.
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Per the original Social Security Act, government workers wouldn’t receive Social Security benefits because they retired with government-sponsored pension plans instead.
However, as pension plans became less common and less comprehensive over time, the act was eventually amended. It’s now up to individual states to opt in or out of the Social Security program for public servants, including teachers.
If you’re a teacher, look into your state’s Social Security laws to ensure you aren’t paying into a system that won’t pay you benefits post-retirement.
8. Americans who started working for the federal government before 1984
Most individuals hired by the federal government in or before 1983 were part of the Civil Service Retirement System (CSRS), a pension plan for federal workers that serves as an alternative to Social Security.
Now, federal employees receive their retirement through the Federal Employees Retirement System. The new system includes Social Security retirement benefits and applies to federal employees hired from 1987 onwards.
Workers who participated in the CSRS are still eligible for Medicare.
9. Americans who don’t live through age 62
American workers who have paid into the Social Security system for decades can’t apply to start receiving their benefits until age 62 (though they can delay receiving benefits until age 70).
As a result, those who die before age 62 won’t see any of that money, though their spouse and dependents may be entitled to receive survivor benefits.
However, those diagnosed with a terminal condition can likely apply for Social Security Disability Insurance, which can support Americans unable to work (including those who haven’t reached their 62nd birthday).
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Fortunately, only around 3.5% of American citizens don’t qualify for Social Security, so the odds are that you’ll receive a monthly check once you retire.
Still, knowing for sure can help relieve some financial stress , so talk to your retirement planner or tax professional to understand what retirement benefits you can expect.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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