Social Security Shocker: Why These Retirees Are Losing Their Payments Forever

Social Security has been a critical financial assistance mechanism for millions in the United States. By 2024, Social Security is expected to offer vital help to around 64 million individuals. However, not everyone qualifies for these perks. Around 3.3% of older persons never get Social Security benefits. If Social Security is meant to be the primary safety net for retirees, why are certain people excluded? Let’s look at why this happens and what it entails for individuals who can’t get this help.

Why do some people never get Social Security benefits?

Social Security payouts range from $1,000 to $4,500 per month. 

• Late Arrival to the United States: Immigrants who come to the United States beyond 50, particularly those who have spent much of their life working outside the country, may not have enough work credits to be eligible for Social Security payments.
• Individuals with an irregular job history may not have contributed enough to Social Security during their working years. To be eligible for benefits, persons must complete particular labor credit criteria.
• Government Employees with Exemptions: Some government employees do not participate in the Social Security system because their salary is covered by a separate pension plan, generally private, which may preclude them from qualifying for SSA benefits.
• Mistakes in the Application Process: Despite this apparent fact, many retirees miss out on Social Security payments each year due to application inaccuracies. These blunders may be expensive, with pensioners losing up to $100,000 throughout their lifetime.

How Do “Never Beneficiaries” Manage?

According to Social Security Administration (SSA) data, 54.3% of “never beneficiaries” live in poverty. In contrast, just 5.8% of Social Security recipients are in this scenario.

Many retirees struggle to meet basic requirements, including food, shelter, and medical care, without financial aid. This demonstrates how important Social Security is, not just as a source of income but also as a barrier to poverty for our elderly population.

How Do You Avoid Being Left Out of Social Security?

While certain things are beyond your control, there are actions you may do to prevent being one of the “never beneficiaries”:

• Earn Enough Work Credits: To qualify for Social Security, you must have at least 40 work credits, which equates to around ten years of labor.
• Carefully review your application: Make sure you double-check your application before submitting it.
• Consider deferring Retirement: retirement might enhance your Social Security payouts by up to 8%.