Do Billionaires Still Collect Social Security? The Answer Might Surprise You.

By Reuben Gregg Brewer – Mar 4, 2026 at 10:15AM ESTKey PointsSocial Security is meant to be a social safety net.Every person who works pays into Social Security.Social Security was created in 1935, shortly after the Great Depression started. It's changed over the years, but the basic goal remains the same. This government program provides financial support, primarily to older adults who are no longer working, ensuring a basic level of income. However, it isn't means-tested. Social Security saves the day Social Security is a powerful tool for alleviating poverty among the elderly. The basic idea is that people put a small amount of their earnings into the system while they're working and then, when they stop working, they start collecting Social Security payments to support them in retirement. There are some interesting nuances on both sides of the equation. For example, everybody pays into the Social Security system while they're working. However, Social Security taxes are paid on income only up to a certain threshold. In 2026, income up to $184,500 will be hit with Social Security taxes. By contrast, all of your income will be subject to Medicare taxes, a program that provides healthcare to older adults.

The Social Security limit is interesting because the median income in the United States was around $45,000 in 2024, while the median household income was roughly $84,000, since many families have two working partners. Image source: Getty Images. While most people face Social Security taxes on everything they make, billionaires likely pay Social Security taxes on a very small portion of their incomes. However, everyone still pays that tax, whether they like it or not. Everyone gets to claim Social Security There's clearly a big difference between someone who makes $45,000 a year and someone who could generate multiples of that from interest and dividends alone. Billionaires clearly don't need to collect Social Security, while someone making the median income or less will probably find Social Security a vital financial lifeline in retirement. However, because everyone who works pays into the system, everyone can collect Social Security when they retire. And given the way Social Security payments are calculated, billionaires are likely to receive the highest benefits, even though they probably don't need the money. This raises an interesting complication as concerns about the Social Security program's solvency grow.

Saving Social Security There are many government programs that are means-tested, meaning that only those in financial need can claim the benefits.

While Social Security isn't one of those systems, the idea of making it means-tested has been floated as a way to strengthen the program. For many, means testing will sound like a reasonable idea, even though it's now considered an earned right to collect Social Security. In the meantime, people who don't need Social Security could choose not to claim it, even though it remains their right to collect it.Read NextMar 4, 2026 •By Dana George5 Reasons Why Age 62 Is Not the Worst Social Security Claiming AgeMar 4, 2026 •By Maurie BackmanDoing a Roth Conversion at 63?

Beware This Pitfall.Mar 4, 2026 •By Maurie Backman2 Social Security Changes Retirees Need to Know About in 2026Mar 3, 2026 •By Maurie BackmanThe Hidden Benefit of Doing a Roth Conversion Ahead of RetirementMar 3, 2026 •By Maurie Backman3 Expenses That Could Derail Your RetirementMar 3, 2026 •By Maurie BackmanWorried About a Recession? 3 Moves All Retirees Should Make Right Now.About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewer