Millions of hardworking Americans could discover too late that their years of paychecks don’t guarantee a Social Security safety net.
Navigating the world of retirement can feel like a game of chance, with ups and downs. You’re saving, planning, and dreaming about those golden years, maybe a cozy cottage by a lake or an RV trip across the country. For many Americans, Social Security is a cornerstone of their financial plan, a safety net woven into the fabric of their working lives. We see that little FICA deduction on our paychecks and trust it’s building a future for us. But what happens when that trust is misplaced? What if you’re one of the people who, despite a lifetime of work, may not qualify for those benefits?
The reality is that Social Security isn’t a universal benefit; it’s a program with specific rules and eligibility requirements. It’s easy to assume that if you’ve worked in the U.S., you’re in the clear, but that’s a common misconception. The program has its own set of guidelines, and missing just one can change your retirement story. Here are eight types of people who might find themselves on the outside looking in when it comes to Social Security benefits.
Some Members Of The Clergy
For many years, some clergy members were exempt from paying Social Security taxes on their earnings from their religious work. This was an option they could choose to decline coverage based on a religious conviction. While this exemption is now closed to new applicants, some older clergy members who made this election are not covered by Social Security. This shows how past decisions can have a long-term impact on financial security.
Federal Employees Hired Before 1984
For decades, many federal workers were part of a different retirement system called the Civil Service Retirement System (CSRS). This program, which began in 1920, served as their primary retirement plan, and they did not pay Social Security taxes. As a result, they’re not eligible for Social Security benefits on their own work record. While most federal employees hired after 1983 now participate in the Federal Employees Retirement System (FERS) and contribute to Social Security, this older generation is on a different track.
State And Local Government Workers With A Separate Pension
Consider a teacher or a police officer who works for their local city or state. Some of these government jobs are part of a state or local retirement plan that opts out of Social Security. This arrangement is often a trade-off: they get a solid pension from their employer but forgo Social Security benefits. This can create a significant financial gap for these individuals later in life if they aren’t prepared.
Non-Resident Aliens
An individual who is not a U.S. citizen and doesn’t have a permanent resident status (a green card) may work in the U.S. and even pay Social Security taxes, but they may not be eligible for benefits. The rules are intricate, but generally, to qualify for Social Security benefits, a person must be a U.S. citizen or a “lawfully present” non-citizen. This includes having the right immigration status and meeting the work credit requirements.
People Who Have Not Worked Enough Years
The Social Security system works on a credit basis. You earn “credits” when you work and pay Social Security taxes. The number of credits you earn depends on your income, and you can earn up to four credits each year. To be eligible for retirement benefits, you generally need 40 credits, which equals ten years of work. Many people, for various reasons, just don’t get there. This can be due to a career that was cut short, a period of caring for family members, or a life spent overseas.
Individuals Who Earned Too Little
It’s not just about the number of years you work; it’s also about how much you earn during that time. For 2025, you get one credit for every $1,810 you earn in wages or self-employment income, up to the maximum of four credits for the year. Someone who works part-time or at a very low-wage job might struggle to get the required 40 credits over their lifetime. This can be a cruel twist of fate for people who worked hard but in low-paying jobs, leaving them without the safety net they expected.
People Who Worked Exclusively In Certain Overseas Jobs
Some jobs held overseas are exempt from U.S. Social Security taxes. This often applies to people who work for foreign governments, international organizations, or certain foreign employers. These individuals may be part of a different country’s social security or retirement system. A person could have a long and successful career abroad, only to return to the U.S. and find that their years of work don’t count toward their Social Security record.
People Who Work Exclusively For Themselves And Don’t Pay Taxes
It’s easy for self-employed individuals to fall through the cracks. They are their own boss and their own HR department. While Social Security and Medicare taxes (known as FICA) are automatically deducted from a traditional employee’s paycheck, self-employed people are responsible for paying these taxes themselves. This is known as the Self-Employment Contribution Act (SECA) tax. If a self-employed person doesn’t report their earnings and pay these taxes, they won’t accumulate the credits needed for Social Security.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
How Total Beginners Are Building Wealth Fast in 2025—No Experience Needed
How Total Beginners Are Building Wealth Fast in 2025
I used to think investing was something you did after you were already rich. Like, you needed $10,000 in a suit pocket and a guy named Chad at some fancy firm who knew how to “diversify your portfolio.” Meanwhile, I was just trying to figure out how to stretch $43 to payday.
But a lot has changed. And fast. In 2025, building wealth doesn’t require a finance degree—or even a lot of money. The tools are simpler. The entry points are lower. And believe it or not, total beginners are stacking wins just by starting small and staying consistent.
Click here and let’s break down how.
5 Easy Steps to Change Any Habit
5 Easy Steps to Change Any Habit
We all click on them with the hope that just THIS time the secret to changing a bad habit or adopting a healthy one will be revealed and we’ll finally be able to stick to that diet, stop that one or ten things that might in the moment make us feel temporarily good but really just make us fat, unhealthy, sad, mad or just frustrated with ourselves.
