Think You’ll Get Social Security? Some Americans Won’t - Here’s Why

Social Security is the backbone of retirement for most Americans, but not everyone can count on it. Some workers never qualify, while others qualify but see their checks reduced or withheld for reasons that have nothing to do with how much they earned.

If there's any chance you're in one of these groups, the fix is usually to act early if you're planning for retirement. Check your earnings record, file taxes correctly, and get ahead of any issues with the Social Security Administration (SSA) or other relevant agencies.

Infrequent workers who don't meet the 40 credit rule

To receive a retirement benefit on your own work record, you usually need 40 credits. You can earn up to four credits per year from covered work that pays Social Security tax. In 2025, you earn one credit for every $1,810 in covered earnings, with a maximum of four credits after $7,240 of earnings. Anyone born in 1929 or later needs a full 40 credits to be fully insured for retirement benefits.

People who step out of the workforce for long stretches, such as stay-at-home caregivers, part-time or seasonal workers, and recent immigrants who don't accrue enough U.S. credits may fall short. If you split your career between the U.S. and another country, a Totalization

Agreement may let you combine credits to qualify for a partial benefit, even if you don't hit 40 U.S. credits.

Create or sign in to your my Social Security account and review your earnings record. If you're below 40 credits, you may still qualify later by working more in covered employment, or by using a Totalization path if applicable.

Some debtors whose benefits can be withheld

Your check is generally protected from regular creditors, but the government and courts can take a slice in specific circumstances. The SSA can withhold benefits to enforce court-ordered child support, alimony, or restitution under Section 459 of the Social Security Act, and the IRS can levy up to 15% of each payment for overdue federal taxes.

For other delinquent federal debts, like defaulted student loans, the Treasury Offset Program (TOP) can reduce Social Security payments, but there's a cap of 15% of the benefit amount and the recipient must still receive a minimum of $750 of the benefit per month.

Policy around student loan offsets has been in flux. The Education Department announced a restart of TOP collections in April 2025, then said in June that Social Security offsets for defaulted borrowers would be paused. Regardless of pauses, the legal authority remains, so the safest move is to resolve the default or enter a repayment plan before offsets hit.

• If you owe child support or alimony, contact your state enforcement office to set a realistic payment plan.
• For tax debts, look into installment agreements with the IRS.
• If you have defaulted federal student loans, call the Default Resolution Group to get into rehabilitation or a modern income-driven plan before any offset.

Expatriates whose payments are restricted in some countries

U.S. citizens can receive Social Security while living in most countries, but the Treasury Department prohibits payments to people residing in Cuba or North Korea. If you are a U.S. citizen in those countries, your benefits are withheld and then paid once you move to a country where the Treasury can send payments. If you are not a U.S. citizen, you cannot receive payments for the months you lived in Cuba or North Korea at all.

The SSA also lists several countries where payments are generally restricted unless specific exceptions are met. If you're planning a long stay abroad, use the SSA's Payments Abroad screening tool before you finalize your relocation.

Before moving, confirm whether your destination is payable, and set up direct deposit to a supported bank. If you're in a restricted country, plan your exit and keep documentation so SSA can release help payments promptly when you relocate.

Most prisoners do not receive checks while incarcerated

Social Security retirement and disability benefits are suspended for anyone confined for more than 30 continuous days after conviction. Payments do not go to your prison account, and they don't accrue. In most cases, eligibility can resume the month after release, but you'll need to contact the SSA to restart benefits and resolve any issues with payment timing and residency.

If a family member depends on your benefits, ask the SSA about possible auxiliary benefits or community resources during your incarceration. Before release, work with the facility or a reentry navigator to reconnect with the SSA so your benefits resume quickly.

Self-employed people who don't report earnings

Self-employment income is covered by Social Security, but it only counts if you report it and pay self-employment tax. If your net self-employment earnings are $400 or more in a year, you must file Schedule SE with your tax return. The SSA uses that filing to credit your earnings record and determine your future benefit. If you don't report, you don't get the credits, and you can be shut out of retirement benefits later, even after decades of gig or contractor work.

Underreporting can also permanently lower your Social Security base. Because your retirement benefits are based on your 35 highest earning years, missing or low-reported years can reduce your check for life. 

File accurate returns every year, keep clean books, and fix past underreporting with amended returns if needed. Then check your SSA earnings record to confirm the income posted correctly.

Bottom line

Most retirees do receive Social Security benefits, but the program has clear rules that can block or shrink your check. If your work history is thin, confirm your credits and look at Totalization options if you worked abroad.

If you owe support or taxes or have defaulted federal loans, understand how garnishments and offsets work and get into a plan before they hit. If you're moving overseas, check the country-specific rules, especially for Cuba or North Korea, and how to reclaim payments after you leave. And if you're self-employed, report every dollar that's due on Schedule SE so your future benefit isn't hollowed out.

When there's doubt about your eligibility, make a backup plan to supplement your income while you work with the SSA to clarify your status.

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Author Details

Katy Willis

Katy Willis is a personal finance writer for FinanceBuzz, with over 20 years of experience helping readers make smarter financial choices. She specializes in frugal living, debt-proof budgeting, and building long-term financial security by spending less and reusing resources more effectively.