While many people associate Social Security with low-income individuals, even the wealthiest Americans, including billionaires, can qualify for and receive Social Security benefits.
Eligibility Requirements for Billionaires
The key to understanding eligibility for billionaires lies in the fact that Social Security benefits are based on earned income, not wealth. This means that even if someone has amassed a billion-dollar fortune, they can still qualify for Social Security if they have worked and paid Social Security taxes during their career.
Here are the specific eligibility requirements:
- Minimum of 40 quarters (10 years) of earned income: This is the minimum requirement to qualify for any Social Security benefit.
- Maximum possible benefit: To receive the maximum benefit, you must have earned the maximum amount of income subject to Social Security taxes for at least 35 years. In 2023, this amount is $160,200.
Potential Exceptions for Billionaires
While most billionaires likely meet the minimum income requirement, some exceptions might exist:
- Passive income: If a billionaire’s wealth primarily comes from passive sources like investments or business profits, they might not have the required 40 quarters of earned income.
- Inheritance: Inherited wealth does not count towards Social Security eligibility.
Maximum Social Security Benefit
Even for billionaires who qualify for Social Security, the maximum benefit they can receive is capped. As of 2023, the maximum monthly benefit at full retirement age is $4,555. This amount increases to $5,632 for those who delay claiming benefits until age 70.
Public Discourse on Billionaires and Social Security
The issue of billionaires receiving Social Security benefits has sparked public debate. Some argue that it is unfair for wealthy individuals to receive benefits they may not need, while others maintain that everyone who has paid into the system deserves to receive benefits.
In conclusion, billionaires can and do receive Social Security benefits, provided they meet the eligibility requirements based on earned income. However, the maximum benefit they can receive is capped, and the issue of their participation in the program continues to be a topic of public discussion.
Some billionaires might not qualify for the maximum, or any benefit at all
One key point to be aware of is that Social Security retirement benefits are based on your earned income, such as wages from a job. Many of the wealthiest Americans get their income from passive business activities, or from dividend income on their investments, which is not counted for Social Security purposes.
- You must have earned income from a covered occupation for at least 40 quarters (10 years) in order to be eligible for a Social Security retirement benefit. You must have earned the maximum amount of income subject to Social Security taxes for at least 35 years in order to be eligible for the maximum Social Security benefit. (In 2017, for instance, you would have to make $127,200, the maximum taxable amount.) ).
This implies that a billionaire who inherited their wealth and whose sole source of income has been from investments might not be eligible for any Social Security benefits at all.
As an additional illustration, suppose a self-employed business owner made 15 years of work, sold the company for several billions of dollars, and never returned to the workforce. This person would probably be eligible for Social Security benefits, but since they only have 15 years of income under their belt, their benefit would probably be significantly less than the maximum.
Even the richest Americans can qualify for Social Security retirement benefits
Show Caption Hide Caption: Four Potential Changes for Social Security Under Trump: President Trump pledged to his staff to cut federal spending by $10 billion. 5 trillion over 10 years. Newslook.
The short answer is yes. When they turn 62, billionaires are eligible to receive Social Security benefits, even though they don’t need the additional income, and many of the wealthiest Americans are currently receiving a monthly Social Security check. But since Social Security benefits are limited, billionaires get about the same amount from the government as the majority of middle-class Americans.
Here’s How Much Money You’ll Get From Social Security
FAQ
Do millionaires receive Social Security benefits?
Do movie stars pay into Social Security?
Do retired actors get Social Security?
Which US employees do not receive Social Security benefits?
Can millionaires and billionaires collect Social Security?
As many millionaires and billionaires inherited their wealth and live off investment income, this means they don’t pay Social Security taxes and are thus ineligible for retirement benefits unless they work and pay taxes that way. This article originally appeared on GOBankingRates.com:
How many people receive social security checks?
While 99.1% of Social Security recipients now receive their money via direct deposit, that remaining 0.9% equals 549,818 people receiving checks, according to official data published by the Social Security Administration for this month. CNN holds elected officials and candidates accountable by pointing out what’s true and what’s not.
Who is not eligible for Social Security?
Workers who don’t accrue the requisite 40 credits (roughly 10 years of employment) are not eligible for Social Security. Some government and railroad employees are not eligible for Social Security. American expatriates retiring in certain countries—and some retired immigrants to the U.S.—can’t collect Social Security benefits.
Do you still receive social security checks?
More than seven years later, the Social Security Administration website currently says: “If you still receive checks, the U.S. Department of the Treasury will contact you about complying with the requirement.”