It is estimated that by 2024, Social Security has been the main economic support for 64 million people in the United States, with 3.3% of older adults never receiving payments from the program. Why does this happen if Social Security is the main financial safety net? We will explain below why this happens and how it impacts people who cannot be beneficiaries of the Social Security program.
Why are there some people who will never receive Social Security benefits?
Social Security programs range from $1,000 to the maximum amount of $4,500, so why are there people who will never receive money from the SSA? They are called “never beneficiaries” and refer to those older adults who, despite being of retirement age, do not qualify to receive SSA income for various reasons:
- Migrants who arrived late to the United States. Those people who arrived in the US after age 50, in case they have spent a large part of their working years outside of the United States, do not accumulate enough credits to be eligible for SSA payments.
- Those people who have not had a stable job but rather one that has been intermittent over time. So, if they contributed little or nothing to the Administration, it is possible that they do not meet the minimum requirements to receive SSA benefits.
- Some government employees are exempt from the Social Security system because their income is managed through another pension system (usually private).
- Retirees who made mistakes in their application process: it’s obvious, but thousands of Americans lose their benefits every year because they make mistakes when filing their applications. These mistakes can cost up to $100,000 over the life of a retiree!! Pay close attention when you have to file your application.
So how do the “never beneficiaries” do it?
According to SSA data, 54.3% of the “never beneficiaries” live below the poverty level, in contrast to only 5.8% of those who receive payments.
It is normal that, without financial support, many retirees face difficulties in covering basic needs such as food, housing and medical care. So, in this context, it is important to emphasize that Social Security is not just an income, but it is a shield against poverty for our elders.
How can I avoid being left out of Social Security?
Not all factors are going to be under control, but we can make a list of tips to avoid losing access to SSA benefits:
- To qualify for SSA, remember that you have to accumulate at least 40 work credits (approximately 10 years of work). So, if you are close to retirement age and do not meet another requirement… you should consider continuing to work to reach the necessary threshold and be able to receive your SSA payment.
- Review your application carefully when you are going to submit it. If you consider that it is a very complicated process, there are financial advisors and official SSA guides that can help you avoid mistakes that could cost you a lot of money!
- Are you considering postponing your retirement? Remember that you could get up to 8% more in your payment. But, think carefully! Because not everyone is prepared to work until they are 70 years old!
If you still have time to avoid being one of these “never beneficiaries” don’t hesitate. Remember that retirement is the time when we deserve to rest and reap all that we sowed during our working years. So, make sure, if you still have time, to review all your data and plan for retirement. Time passes in the blink of an eye!