Compare any group of seniors and you'll probably find several differences between them, including how they've prepared for retirement. But one thing most have in common is a monthly Social Security check that helps them cover some of their expenses. Millions of Americans qualify for Social Security benefits simply by having worked or by being married to a qualifying worker. But there are a few who can't claim benefits in retirement.
You don't want to find out you're among them on the eve of retirement, so it's a good idea to verify your eligibility well in advance. If you belong to any of the three groups below, you may have to plan for a future without Social Security.
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1. Those with too few work credits
Most workers qualify for Social Security by accruing work credits. A credit is defined as $1,640 in earnings in 2023, but this changes annually. In past years, you may have earned credits with less income and in the future, you'll likely need more.
You need at least 40 work credits in order to claim Social Security retirement benefits, but you can only earn up to four credits per year. That means you have to work a minimum of 10 years to qualify for benefits, though these years don't have to be consecutive.
Those who never enter the workforce or who don't accrue 40 work credits cannot claim Social Security benefits on their own. However, they may still qualify for a spousal benefit if they're married to someone who did earn enough work credits during their lifetime. Ex-spouses may also qualify for spousal benefits if they were married to the worker for at least 10 years.
If you're unsure how many work credits you've earned to date, you can double check by looking in your Social Security account. Here, you'll be able to see if you qualify, or if not, how many credits you need. You can also view an estimate of your future benefits based on your work history to date.
2. Those who retire abroad in specific countries
The U.S. government will send Social Security benefits to qualifying seniors living abroad in most countries. However, there are a few it will not send checks to. These include:
- Azerbaijan
- Belarus
- Cuba
- Kazakhstan
- Kyrgyzstan
- North Korea
- Tajikistan
- Turkmenistan
- Uzbekistan
The U.S. is sometimes willing to make exceptions for those living in the above countries, except for Cuba and North Korea. In order to qualify for an exception, you must meet and agree to restricted payment terms. Contact the Social Security Administration to learn more about this.
The good news is, if you choose to retire abroad in one of these countries and later move back to the U.S. or to another country the U.S. can send Social Security checks to, you'll receive all the benefits the government previously withheld from you.
3. Some railroad workers
It might seem odd, but railroad workers actually have their own set of benefits they can qualify for apart from Social Security. The Railroad Retirement Board (RRB) administers these benefits to those who have worked at least 10 years in positions subject to railroad-specific taxes or at least five years after 1995. These individuals may not qualify for Social Security benefits unless they also worked at least 10 years in a different industry where they earned Social Security work credits.
Railroad benefits are similar to Social Security benefits in that they provide for retired and disabled railroad workers as well as some members of their families. But they're not exactly the same. For example, children only receive railroad benefits if their parent is deceased, whereas children can receive Social Security benefits while the qualifying worker is alive if they are minors or adults who were disabled before age 22.
Those who have spent some time working in the railroad industry but not enough to qualify for its retirement benefits will have their work credits transferred to the Social Security program. These individuals will be able to claim Social Security retirement benefits like people in any other line of work.
When in doubt, it never hurts to reach out to the Social Security Administration to verify your eligibility. You can do this by reaching out online, over the phone, or by visiting your local Social Security office. It only takes a few minutes, and it can help you ensure you aren't met with an unpleasant surprise when you finally apply.
