10 Ways Younger Workers Can Prepare for Future Social Security Changes

Published March 28, 2025, 10:04am ET · 2 min read

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A smiling man with a beard and round glasses is shown against a blurred background. The background features elements resembling the US flag with red and blue stripes and overlaid text from a historical document. White letter tiles in the foreground spell out 'SOCIAL SECURITY' in two rows. — This image visually represents the importance of understanding and protecting Social Security benefits, even during challenging financial times, through a smiling individual and prominent lettering. © Canva | ferrantraite from Getty Images Signature and Kameleon007 from Getty Images Signature

Social Security has become a financial insurance policy for nearly every American citizen who has contributed the prerequisite number of years or equivalent credits into paying FICA tax. Started by President Franklin Roosevelt during the Depression, the program is intended to serve as a financial buffer for citizens after they reach retirement age. It’s natural that most young people may think that age 62 is too far away for them to concern themselves about Social Security. Nevertheless, it behooves every American citizen to educate him or herself as to the mechanics and realities of Social Security benefits

As has been spotlighted recently by Elon Musk and DOGE, the Social Security fund has been rife with abuse, misappropriation, fraud, and outright theft. If left unchecked, economists anticipated that the fund could become insolvent by 2034. Thankfully, President Trump is taking the necessary steps to remove fake names, fake social security numbers, and other fraudulent parties from the beneficiary payrolls, and is taking other steps to make sure that it remains intact for the long haul.

1. Minimum Qualifications for Social Security Benefits

payroll taxes . Conceptual background with chart ,papers and pen — Social Security benefits qualification minimum is 40 credits, which equate to an average of 10 years of employment, paying FICA taxes.

All citizens born on US soil or naturalized are eligible for Social Security benefits if they have met the 40 credit minimum qualification.

2. Social Security Is More Than Just For Retirees – It Can Also Be For Disability

About 25 percent of Americans receiving Social Security are not retired workers. They include people receiving disability insurance benefits.

Disabled workers can apply for disability Social Security coverage if the disability will last for at least a year or is diagnosed as terminal.

Social Security Disability Benefits are shown on the conceptual business photo — Families with disabled children under age 18 can qualify for disability coverage.

3. Spousal Survivor’s Benefits and Their Children

Widowed survivors can receive a deceased spouse’s benefits until they reach age 62 to apply for their own benefits, or choose to forego them to continue the survivor’s benefit if its amount is higher.

The surviving children of a deceased worker can apply for and receive survivor’s benefits until they reach 19.

4. Non-Citizens May Qualify Under Certain Conditions

United States social security number cards lies on Application from social security administration on A4 tablet lies on office table with pen and magnifying glass close up — Non-citizens must be “lawfully present” and possess work authorizations to qualify for obtaining a Social Security number.

Map of Germany, Poland and Austria, world tourism, travel destination, world trade and economy — There is a 5-year residency requirement and payments will be suspended if the recipient is outside of the US for 6-months unless they are in a country with a totalization agreement, such as: Australia, Austria, Canada, France, Germany, Japan, Italy, Norway, South Korea, Spain, Sweden, UK, and others.

5. FICA Tax is Regressive, But Social Security Benefits are Progressive

Payroll Taxes are classified as regressive, since, for example, a superstar athlete and a fireman might both pay $7500 in FICA, but the payment would represent 0.04% of the athlete’s salary, vs. 4.2% of the fireman’s salary.

Social Security Benefits would be classified as progressive, since the payout returns to the fireman at retirement would be substantially greater, percentage wise, than to the athlete.

6. Social Security Exemptions

There are several categories of workers who are ineligible for Social Security benefits because of other types of coverage they receive. Some examples include:

State and Other Municipal Workers who receive State-based plans in lieu of Social Security are one exemption example.

Railroad Workers who are covered under a separate railroad retirement program under the Railroad Retirement Act are another Social Security exemption.

7. Think of Social Security as a Plan B

Due to inflation and potential benefit reductions due to the aforementioned Social Security fund issues, It is unwise for people to plan their retirements based solely on Social Security benefits.

average 401k match — Starting early on, workers should try to max out 401-K plans, especially if there is an employer matching component, as well as open and contribute to an IRA account.

health savings account HSA concept with application form,dollar money, stethoscope on desk. — Additional savings for an Emergency Fund and Health Savings Account should also be undertaken.

8. Many Freelance Jobs Don’t Count Towards Your Credits

Many occupations, such as Social Media influencers, Consultants, Freelance writing, photography, Dee Jays, and other services categorized under a 1099 or paid in cash are not reporting contributions to the Social Security and Medicare funds.

Papers with title social security tax. — Workers in these types of freelance situations will require separate payment of the self-employment tax to count as their contributions, since FICA deductions are not being conducted.

9. Side Hustles Don’t Count Towards Your Credits

Percentage of Americans with Side Hustle — Similar to Freelance work, side hustles will not count towards Social Security and Medicare unless reported with corresponding self-employment tax.

emergency fund breakdown — Side hustle revenues might very well be better allocated towards an emergency fund.

10. To File at 62 or Hold Off For A Bigger Slice?

social security benefits application form — While age 62 is the earliest one can file for Social Security benefits, there is roughly an 8% increase for every year one delays filing up to age 67 for full benefits.

Deciding when to start filing is a subjective topic and should be predicated on one’s individual circumstances.

While President Trump has initiated the steps to fix the gaps and close the holes in Social Security that allowed such massive pilferage of taxpayer dollars, Congressional in-fighting may delay remediation to restore the program in full will likely take years. One needs to weigh these risks and make their own decisions for the future accordingly.

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John Seetoo

After 15 years on Wall Street with 7 of them as Director of Corporate and Municipal Bond Trading for a NYSE member firm, I started my own project and corporate finance consultancy. Much of the work involves writing business plans, presentations, white papers and marketing materials for companies seeking budgetary allocations for spinoffs and new initiatives or for raising capital for expansion or startup companies and entrepreneurs. On financial topics, I have been published under my own byline at The Motley Fool, 247wallst.com, DealFlow Events’ Healthcare Services Investment Newsletter and The Microcap Newsletter, among others. Additionally, I have done freelance ghostwriting writing and editing for several financial websites, such as Seeking Alpha and Shmoop Financial. I have also written and been published on a variety of other topics from music, audiophile sound and film to musical instrument history, martial arts, and current events. Publications include Copper Magazine, Fidelity (Germany), Blasting News, Inside Kung-Fu, and other periodicals.

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