Who will never receive Social Security?

( NewsNation ) — Despite the program’s wide reach, approximately 3.3% of individuals aged 62-84 will never receive Social Security, according to data from the 2023 Trustees Report, facing unique challenges and higher poverty rates than their beneficiary counterparts.

Millions of Americans count on Social Security benefits to make ends meet. This year, almost 68 million people will receive a monthly Social Security benefit. The vast majority of beneficiaries, roughly 75%, are retired workers who received an average monthly check of $1,918 as of June.

Who are the never-beneficiaries?

Based on data from May 2024 , the never-beneficiary population is diverse but generally includes higher proportions of:

• Women (63%)
• Hispanics (28%)
• Immigrants (49%)
• Never-married individuals (21%)
• Widows (20%)
• Those with less than a high school education (36%)

Never-beneficiaries categories

Researchers have identified three primary groups within the never-beneficiary population:

1. Late-arriving immigrants (49%): Those who enter the U.S. at age 50 or older
2. Infrequent workers (38.9%): Individuals with insufficient work credits
3. Noncovered workers (10.8%): Primarily state and local government employees
4. Die before receiving benefits (1.3%): Individuals who die before receiving benefits

Never-beneficiaries poverty rate and income

The data reveals a stark contrast in poverty rates:

• Overall never-beneficiary poverty rate: 54.3%
• Current and future beneficiary poverty rate: 5.8%

Never-beneficiaries rely on different income sources compared to Social Security recipients:

• Late-arriving immigrants: Heavily reliant on coresident income (36.5% of household income)
• Infrequent workers: More likely to receive Supplemental Security Income (31.2% receive SSI)
• Both groups: Asset income is the most common source but at lower levels than beneficiaries

Never-beneficiaries expected to decline

The percentage of never-beneficiaries is projected to decline slightly in the coming years, from 3.7% in 2010 to 3.1% in 2030. However, the high poverty rates among this group remain a concern for policymakers and researchers focused on elderly well-being.

NewsNation’s Andrew Dorn contributed to this report.

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