If you've recently started a job that doesn't pay into Social Security, you might be wondering what that means for your future retirement benefits. That's exactly what a listener named Marcie asked Suze Orman on a recent episode of her "Women & Money" podcast — and the answer depends on your work history.
Social Security Looks at 35 Years of Earnings
The Social Security Administration states that your retirement benefit is based on your 35 highest-earning years in jobs that paid into the Social Security system. If you haven't worked for 35 years in qualifying employment, the SSA fills in the missing years with zeros.
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That's why Orman told Marcie, "If you don’t already have 35 years in Social Security and jobs that have paid into Social Security, then yeah, these years that you’re working that don’t pay into Social Security will absolutely hurt you."
In other words, non-covered employment — meaning work that doesn't withhold Social Security taxes — can reduce your benefits if you haven't already met the 35-year threshold. Those zero-income years bring down your average earnings, which are used to calculate your monthly benefit.
How Your Benefit Is Calculated
Social Security uses a specific formula to determine your primary insurance amount, or PIA — the amount you'll receive at full retirement age, which is between 66 and 67 for most people today.
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The formula is based on your average indexed monthly earnings, or AIME, from your top 35 years of earnings. If you don't have 35 years of covered work, your AIME — and therefore your benefit — will likely be lower.
For example, someone who worked only 30 years in Social Security-covered employment would have five years of zeros factored in. Those missing years could cause a noticeable drop in monthly benefits.
Do You Have Enough Work Credits?
To qualify for Social Security at all, you also need to earn 40 credits over your lifetime. In 2025, one credit equals $1,810 in wages or self-employment income. You can earn up to four credits per year, which means it takes at least 10 years of covered work to qualify.
If your past jobs already gave you enough credits, and you've worked 35 or more years in Social Security-covered roles, taking a new job that doesn't pay into Social Security won't reduce your benefit — though it won't increase it either.
What You Can Do
If you're unsure how many qualifying years or credits you have, you can check your Social Security statement online at ssa.gov. This will show your earnings history and estimate your future benefit.
Understanding where you stand can help you make decisions about when to claim Social Security, whether to continue working, and how much you might need to rely on other retirement income sources like savings or a pension.
It all comes down to whether you've already met that 35-year mark. If not, each year in a non-covered job could have a real impact.
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