Six Reasons Why You Will Not Receive Social Security!

For many workers in the United States, Social Security benefits are the golden carrot at the end of a lengthy career. According to the Social Security Administration, while you can begin receiving some Social Security benefits as early as age 62, you will continue to get a larger amount each year you delay accepting benefits until you reach age 70.

However, this requires that you have earned enough credits to be eligible for these advantages in the first place.

Not every employee is eligible for these benefits, and it’s better to know ahead of time so you can either correct the situation or make other retirement plans.

There are a few instances where a worker’s Social Security benefits were not obtained.
Here are six reasons why you might not be able to participate.

Inadequate Social Security Benefits

According to the American Association of Retired People, in order to pay your way into the Social Security system, you must work and earn “credits” that allow you to qualify for these benefits, which begin at retirement (AARP).

For every $1,470 in earnings or self-employment income you made in 2021, you received one credit. According to the Social Security Administration, the maximum number of credits you can get in a year is four.

To be eligible for any type of Social Security payment, a person must have a total of 40 credits. You may not be eligible for these perks if you haven’t worked long enough to acquire all 40 credits.

You’re a Government Employee, Aren’t You?

While the government normally looks after its employees, there are several exceptions for employees who do not receive Social Security benefits at the state, county, and municipal levels.

Six Reasons Why You Will Not Receive Social Security!

Instead, these workers contribute to and receive benefits through state-funded pension programs. These are some of them:

  • Employees of the United States government who were hired before 1984 are entitled to a pension under the old Civil Service Retirement System.
  • Railroad workers have a pension system that dates back to the 1930s.
  • Foreign people who work for their home governments in the United States, such as ambassadors or employees of international organizations like the United Nations
  • The majority of first responders/safety personnel, such as cops and firemen
  • Many K-12 educators

If You Haven’t Paid Your Self-Employment Taxes

Many self-employed business owners are unaware that they are now required to pay into Social Security twice: once as an individual and again on behalf of their company. You must pay self-employment tax together with your federal tax return.

You may not have enough Social Security credits to get benefits when you retire if you either do not file a tax return or file it incorrectly (and, if you continually do not pay these taxes, you can get into legal trouble).

Some Divorced Individuals

Be cautious if you are divorced and did not earn enough credits to qualify for Social Security benefits on your own, but are banking on receiving half of your ex-payments.

spouse, You must be single, at least 62 years old, and have earned less money and received fewer benefits than your ex-spouse. According to Investopedia, if you were married for less than ten years, you are not able to receive your spouse’s benefits.

If You Want to Retire in a Foreign Country

According to Investopedia, if you retire outside of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa, you may not be eligible for Social Security benefits.

Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, Moldova, North Korea, Tajikistan, Turkmenistan, and Uzbekistan are among the countries to which the US will not provide funds.

There may be exceptions, so check the Social Security Administration’s “Benefits Abroad Screening Tool” to see if you are eligible to receive payments while living outside the United States.

Some Newcomers

Immigrants who arrived later in life in the United States and did not obtain the required 40 work credits to qualify for Social Security benefits will not be able to access these funds when they retire.

However, there is a solution: obtain six labor credits in the United States, which will entitle the person to prorated benefits in the United States. A “totalization agreement” can be used to combine this with prorated benefits from their former nation.