Race Day Live Each year, about 714,000 people receive a Social Security benefit that many don’t even know exists. It’s not retirement, disability, survivor, or spousal benefits. Instead, it’s a special Social Security benefit for children of retired workers.
“Not many people understand that children can receive Social Security,” says Rafael Rubio, president of Stable Retirement Planners.
Most assume Social Security is just for older adults, but if you’re collecting benefits and have minor children, they might be eligible for payments too.
Social Security Benefits for Children of Retirees
According to the Social Security Administration, only about 1% of all beneficiaries are children of retired workers. In December 2024, these children received an average of $918 per month.
Government birth records show a 12% increase in births among women over 45 in 2022. This suggests that more children may qualify for this benefit in the coming years.
But it’s not just older parents who should pay attention—young parents married to older spouses might also have children who qualify.
How Much Can a Child Receive?
Children of retired workers can receive up to 50% of their parent’s monthly Social Security benefit. If both parents receive benefits, the child is entitled to half of the higher wage earner’s payment.
If multiple children are in the household, each gets their own benefit. However, the total amount paid to the family cannot exceed 150% of the retiree’s benefit. If the total exceeds this limit, payments are prorated.
“If they are eligible, go ahead and take it,” says Rubio. He reassures parents that claiming this benefit won’t reduce their payments.
When Do Benefits Stop?
Children typically stop receiving benefits at age 18. However, if they are still in school full-time, they can continue receiving payments until they turn 19.
For children with disabilities, benefits may continue past 18 if the disability started before age 22.
No Restrictions on How the Money Is Spent
Social Security benefits for children don’t come with any strict spending rules. Parents can use the money for anything that benefits the child.
“It’s additional income for the household,” says Keith Fenstad, vice president of Tanglewood Total Wealth Management. While there are no limits on how to use the money, parents should spend it wisely to support the child’s needs.
Some families use the funds for school expenses, housing, or groceries. Others save it in a custodial brokerage account for the child’s future.
How Taxes Work on These Benefits?
Since the benefit is for the child, parents don’t need to report it as their income. Instead, it must be reported on the child’s tax return.
Barbara Taibi, a tax partner at Eisner Advisory Group, explains that in most cases, these benefits are not taxable. However, if the child has other sources of income—like investments or a part-time job—they may owe taxes on a portion of their Social Security benefits.
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Should Parents Claim Early to Help Their Kids?
A child’s benefits only start once their parent begins receiving Social Security. This means parents must decide whether to claim benefits early to help support their children.
Claiming Social Security before full retirement age reduces both the parent’s and the child’s benefits. However, some families may still benefit overall by claiming early, especially if the child is young and could receive payments for many years.
“It might depend on how young the kids are,” Fenstad says. For example, if a child could receive benefits for 10 years, the total amount might outweigh the downside of a reduced retirement benefit. “You want to be sure you do the math,” he advises.
Parents Must Take Action to Claim Benefits
The Social Security Administration won’t automatically notify you if your child is eligible for benefits. Parents must actively apply.
“It’s not like Social Security is going to call you and ask you to apply for your children,” Taibi says. If you have kids under 18 and are collecting Social Security, check if they qualify for benefits—you don’t want to miss out on this extra income.
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