What Every 30-Something Should Know About Social Security Today
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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For 30-somethings, Social Security is often at the bottom of the list of future considerations, especially when retirement feels so far away. With so many other priorities during these years, it’s easy to put it entirely out of mind.
However, actions taken now will affect your Social Security benefits later. Here are seven things every 30-something should know about Social Security today.
Don’t Believe This Myth
One of the biggest misconceptions about Social Security is that it’s just a bill or an expense deducted from your paycheck, according to Farrel Liger, a Wall Street broker and financial advisor and CEO of Farrel Liger Inc. “In reality, Social Security is meant to help replace the income you had before retirement.”
You earn Social Security benefits by paying Social Security taxes, which help replace a portion of your pre-retirement income when you retire. You earn four credits per year of full-time work, and you need about 10 years or 40 credits to qualify for benefits.
“Therefore, the earlier you start working, the earlier you’ll become fully qualified for Social Security benefits in retirement.”
Additionally, the earlier you understand how it works, the better you can plan around what it will and won’t cover in retirement, said Aaron Cirksena, founder and CEO of MDRN Capital.
Your Current Earnings Build Social Security Credits
While Social Security is a long way off for most 30-somethings, your current earnings directly contribute to your Social Security credits each year. Your current income determines your future benefits, Liger explained.
In fact, “Your benefits are based on your highest 35 earning years. Every year of higher wages in your thirties helps boost your future payout,” Cirksena added.
Freelancers Earn Social Security Credits
If you’re a gig or freelance worker who is properly reporting your earnings to the IRS, you’re required to pay self-employment tax, Liger said. “Whether you’re self-employed or a W-2 employee, your work credits still count toward your Social Security benefits.”
Of the self-employment tax, 12.4% goes toward Social Security and 2.9% goes toward Medicare, he explained.
Your Social Security Benefits May Be Reduced
One thing 30-somethings should note is that Social Security is facing an insolvency issue if nothing is done. “Based on current projections, Social Security will not be able to make full payments after 2034,” Liger said. At that point, if no policy changes occur, it’s expected to pay only about 77% of scheduled benefits, leaving a 23% shortfall.
Of course, the president and Congress could make changes to prevent this, but it’s best to plan as if benefits will be reduced.
“Max out workplace retirement plans if possible and build savings outside of Social Security. Think of Social Security as a baseline, not the full plan,” Cirksena added.
Life Changes Impact Social Security
Your work experience isn’t the only factor that affects your Social Security benefits. Life changes can increase or decrease your income, which in turn influences your benefits, Liger pointed out.
“If your income increases and exceeds a certain threshold, a portion of your Social Security benefits may become taxable. On the other hand, if your income significantly decreases, you can request a lower Income-Related Monthly Adjustment Amount (IRMAA) for Medicare Parts B and D to reflect that change.”
Don’t Forget About Security Spousal Benefits
Marriage also affects Social Security benefits. Spousal benefits are a provision that allows a spouse to receive benefits based on their partner’s earnings record, according to James C. Knapp, managing partner at Knapp Family Wealth.
“Even if one spouse has not worked enough to qualify for Social Security benefits on their own, they may still be eligible for up to 50% of their spouse’s benefits.”
This still applies after divorce, so long as the couple was married for 10 or more years and the claiming ex-spouse hasn’t remarried.
Know About Social Security Insurance
If you have a disability that prevents you from working or you live on a low income, you may be eligible for Social Security Insurance (SSI) instead of traditional Social Security benefits. As of 2025, SSI is available to people who earn less than $2,019 from work each month (this limit increases for couples and qualifying people with children).
SSI also considers other income sources such as disability benefits, unemployment and pensions. If you become permanently unable to work due to disability, you may qualify for SSI.
Even if retirement feels far away, the steps you take in your 30s can make a big difference in how much financial security you’ll have later.
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