1. Home
  2. More
  3. 6 Groups Who Cannot Rely on Social Security Benefits
  • Sign up
  • Sign in
Money Talks News
  • Popular
  • Latest
    • Coronavirus
    • Ask Stacy
    • Make
    • Save
    • Borrow
    • Grow
    • Live
    • More
  • Deals
    • Automotive
    • Clothing & Accessories
    • Computers
    • Electronics
    • Everything Else
    • Financial Services
    • Gaming & Toys
    • Health & Beauty
    • Home & Garden
    • Movies, Music & Books
    • Office & Supplies
    • Special Occasion
    • Sports & Fitness
    • Store Events
    • Travel & Entertainment
  • Podcasts
  • Solutions
  • Academy
  • Subscribe to our newsletter
  • Follow us on Facebook
  • Follow us on Twitter
  • Search our site
10 Secret Ways Americans Build Wealth10 Secret Ways Americans Build Wealth
Happy female driver17 Products to Keep Your Car Clean and Organized
unhappy shocked older couple10 Things That Can Ding Your Social Security Payments
Excited man holding money119 Strangers to Inherit $11 Million From Chicago Man

6 Groups Who Cannot Rely on Social Security Benefits

If you fall into one of these groups, don't assume that you will receive benefits.

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Miranda Marquit • April 18, 2022

Share on Facebook Share on Twitter Share by Email Printable version available to members PDF version available to members
Unhappy concerned senior citizen
Axel Bueckert / Shutterstock.com

Not everyone can count on Social Security.

People who didn’t pay into the Social Security system or who didn’t pay enough into it, as well as those in certain other situations, may be ineligible for retirement benefits.

Following are several types of folks who should not count on receiving benefits.

1. Infrequent workers

Grandmother baking cookies with her granddaughter
YAKOBCHUK VIACHESLAV / Shutterstock.com

To receive Social Security retirement benefits, most people need to accumulate at least 40 “credits” during their working lifetime, according to the U.S. Social Security Administration (SSA).

Currently, you can earn up to four credits per year if you work and pay Social Security taxes.

So, it’s perhaps no surprise that infrequent workers — along with immigrants who arrived in the U.S. late in life — make up more than 85% of the people who have never received benefits, SSA data shows.

2. Noncovered workers

Teacher
DGLimages / Shutterstock.com

Not every worker pays into the Social Security system. In certain states, public employees are not covered by Social Security due to receiving a pension.

Such workers can include employees of state and local government agencies, including school systems, colleges and universities. In some states, they may also include police officers and firefighters.

3. Certain debtors

Woman overwhelmed by debt
littlenySTOCK / Shutterstock.com

Do you owe the government money? If so, you might have some of your Social Security benefits withheld to help pay the debt.

If you have overdue federal tax debts or federal student loans, the government can garnish your benefits, as we detail in “10 Things That Can Ding Your Social Security Payments.”

On top of that, if you owe child support or alimony, you could see your benefits diminished to cover those obligations.

Warren Buffett
See Also:
4 Top Retirement Planning Tips From Warren Buffett

4. Certain expatriates

man outside retiree retirement
Phovoir / Shutterstock.com

If you retire in a foreign country, in most cases, you can receive your Social Security benefits there.

However, there are some countries to which the SSA generally can’t send money. Check out the SSA website to find a breakdown of which countries fall into this category.

The SSA does make exceptions in some situations — but not for anyone living in two specific countries.

“The U.S. Department of the Treasury prohibits making payments to persons residing in Cuba or North Korea,” the SSA says.

However, if you are a U.S. citizen living in either of those nations, your Social Security benefits will be held for you and paid out when you move to a country to which the SSA can send payments.

Use the SSA’s Payments Abroad Screening Tool to see if you could receive your benefits as an expatriate.

5. Many prisoners

Prison guard with prisoner
LightField Studios / Shutterstock.com

While persons released from incarceration may be eligible for Social Security benefits if they’ve paid into the system over the years, program rules prohibit payments to most prisoners while they are in jail or prison, according to the SSA. Benefits are suspended for people who have been incarcerated for more than 30 consecutive days due to being convicted of a crime.

6. Self-employed people who don’t report

Upset senior using a laptop
LightField Studios / Shutterstock.com

People who work for an employer get help reporting their earnings to the Social Security Administration and paying their Social Security taxes.

Specifically, employers do all the following on behalf of workers:

  • Report workers’ wages to the SSA so that workers receive the Social Security credits they earned.
  • Deduct half of workers’ Social Security taxes — 6.2% — from workers’ paychecks and send the money to the IRS.
  • Match the workers’ half of their Social Security taxes — another 6.2% — and send the money to the IRS.

However, self-employed people are required to report their own wages and pay the full 12.4% in Social Security taxes to the IRS. This includes submitting an IRS form known as Schedule SE.

The SSA explains:

“If your net earnings are $400 or more in a year, you must report your earnings on Schedule SE, in addition to the other tax forms you must file. … Even if you don’t owe any income tax, you must complete Form 1040 and Schedule SE to pay self-employment Social Security tax. This is true even if you already get Social Security benefits.”

If you’re self-employed but aren’t reporting all your earnings or aren’t paying Social Security taxes, you likely aren’t building up Social Security credits — or aren’t building up as many as you should. Depending on the severity of your situation, you could end up not receiving retirement benefits later.

  Like Article   Add a Comment

Sign up for our free newsletter!

Simple ways to make, save, and grow your money daily:

  happy subscribers    
MTN Podcasts

Every week our podcasts bring you lively money discussions that will give you a few laughs along with advice that will make you richer.

Money with Stacy Johnson

Listen/Subscribe

Read Next

Some of our favorite stories for you to read next.

Couple standing on the shore.
These 13 States Tax Social Security Income
Happy senior couple
3 Costly Social Security Mistakes That Women Make
Happy senior couple enjoying retirement
26 States That Won’t Tax Your Social Security This Year
Sign up for our free newsletter!

Join our many free newsletter subscribers building wealth and destroying debt:

Popular Topics
  • Retirement Investment
  • Surveys for Money
  • How to Make Money Online
  • Emergency Stockpile
  • Free Movie Streaming
  • Senior Discounts
Connect
  • Support & FAQs
  • Memberships
  • About
  • Contact
  • Careers
  • Accessibility Statement
Media
  • Television
  • Where We Air
  • Scripts
  • Sitemap
Legal
  • Terms
  • Privacy
  • Cookies
Editorial
  • Fact-Checking Policy
  • Ethics Policy
  • Corrections Policy
  • Ownership & Funding Info

Do Not Sell My Personal Information

© 2023 Money Talks News. All Rights Reserved.
‭1 (833) 669-8557 | 1732 1st Ave #26661, New York, NY 10128

Advertising Disclosure: This site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Cookie Notice

Our website uses cookies to ensure you get the best browsing experience. By using our website, you agree to our use of cookies. Visit our Cookie Policy and Privacy Policy to learn more.

Sign up for our free newsletter!

Join our happy subscribers and sign up for our free newsletter! You'll get:

  • Tips and advice from our expert money reporters. (Our average experience is 18 years!)
  • Unexpected ways to make more and spend less, delivered to you daily.
  • The best deals and coupons to save on everything you buy.