Retirement benefits are great, but do not assume everybody gets them. For some people, they simply cannot receive any. Who are these people? Below are six that are possibly ineligible for Social Security benefits because of their situation, they did not pay into it, or simply did not pay enough.
- Non-covered workers
These are workers that did not pay into Social Security. In some states, public employees are non-covered because they receive a pension. These employees work in state and local government agencies like schools or the police department.
- Infrequent workers
According to the U.S. Social Security Administration, people need to have 40 credits during their working lifetime to become eligible for Social Security. Currently, one working year is equivalent to four credits.
- Certain debtors
If you owe the government money, expect some of your Social Security benefits to be withheld to settle this debt. Other people who may be affected are those with overdue federal tax debts or federal student loans, and those who owe money in child support or alimony.
- Self-employed people who don’t report
Self-employed people must report their own wages and pay the full 12.4% in Social Security taxes to the IRS. If you are not reporting your income, do not think you are getting away with it. You are likely missing out on Social Security credits or are not building up as many as you should. At worse, you may end up not receiving any retirement benefits later.
- Many prisoners
Most prisoners are not allowed to make payments to Social Security while they are in jail. Benefits are suspended for those who have been incarcerated for more than 30 consecutive days following a conviction.
- Certain expatriates
It is common for many people to retire in other countries. This should not be a problem – they can receive their Social Security benefits there. However, there are some places where the SSA cannot send money. It is important to check out the list from the SSA website before you decide to move anywhere!