Do Billionaires Still Collect Social Security? The Answer Might Surprise You | The Motley Fool

The Social Security program is a way to help retirees cover their daily expenses, allowing them to live more easily in retirement when they no longer receive a steady paycheck from their jobs. Given this idea, the program's purpose is more aimed at helping those who truly need it. A billionaire doesn't fit this description, being among the richest of the rich. As of March, there were 900 billionaires in the U.S., according to Investopedia, among a U.S. population of over 340 million people. Do billionaires still receive Social Security benefits? The answer might surprise you. How Social Security works Social Security is one of the major mandatory spending programs in the U.S. government, meaning it's a required program. Spending programs like Social Security are dictated by existing laws and formulas, which adjust the program each year without requiring congressional approval or a vote. For this reason, anyone who pays Social Security payroll taxes throughout their career is entitled to Social Security benefits, meaning that yes, billionaires do receive monthly Social Security checks, just like everyone else. The bulk of benefits are covered by payroll taxes. The Internal Revenue Service (IRS) levies a 6.2% Social Security tax for both employees and employers. However, self-employed workers are responsible for the full 12.4% tax. Many billionaires start out like everyone else, meaning they likely worked normal jobs for at least a period of time and therefore paid Social Security taxes. Image source: Getty Images. The law states that anyone who earns inflation-adjusted wages of at least $1,810 for at least 40 calendar years, the equivalent of a decade of work, can start claiming benefits as early as age 62. The years also don't have to be consecutive. Now, considering retirees' benefits are based on the taxes they paid into the system, one might think that billionaires receive more in benefits, given that they likely earned higher wages for a significant period and therefore paid more in taxes. However, there is a wage cap, known as the benefit base, on the amount the IRS can tax in benefits each year, and this base is adjusted annually based on national wage growth. In 2026, that cap will be $184,500, meaning people will only pay Social Security taxes on earnings up to that amount. The maximum monthly Social Security check that a retiree could have received in 2025 was $5,108. Believe it or not, billionaires aren't guaranteed to earn the maximum benefit because one must earn the benefit base for at least 35 years, which could prove elusive, especially at the beginning of one's career. Billionaires may also opt for lower salaries in exchange for stock or other forms of compensation. For instance, billionaire Warren Buffett , the longtime head of Berkshire Hathaway , has received an annual salary of $100,000 for over 35 years. Social Security is a complex program It's easy to see why people may feel slighted that a billionaire who doesn't need Social Security still collects benefits, but laws are intended...

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