Many people are unaware of a specific Social Security benefit available to children of retired workers. While most people are familiar with Social Security retirement, disability, survivor, or spousal benefits, this particular benefit for children often goes unnoticed.

Rafael Rubio, president of Stable Retirement Planners in Southfield, Michigan, shares, “Not many people understand that children can receive Social Security.” These payments are not just related to survivor benefits, which are offered after a parent’s death, but also for minor children of retired workers who are already collecting Social Security.

Social Security Benefits for Children of Retirees

As per December 2024 data from the Social Security Administration, only about 1% of all Social Security beneficiaries are children of retired workers, with the average monthly benefit amount being $918. This percentage may increase in the future due to the rising number of children born to women aged 45 and older. In 2022, the number of children born to older mothers increased by 12% compared to the previous year, suggesting a potential rise in the number of children eligible for these benefits.

However, it’s not only children born to older parents who may qualify. Children of younger parents who marry someone older may also be eligible for benefits. According to Barbara Taibi, tax partner at Eisner Advisory Group, children are entitled to receive half of their parent’s monthly Social Security benefit amount. If both parents are receiving retirement benefits, the child will receive half of the higher wage earner’s benefit.

In households with multiple minor children, each child can receive their own benefits, though the payments may be prorated so that the total benefits do not exceed the household maximum, typically 150% of the retiree’s benefit.

Rubio advises, “If they are eligible, go ahead and take it.” He emphasizes that the child’s benefits do not affect the amount the parent receives.

When Do Benefits Stop?

The benefits for children continue until they reach age 18, but they may be extended to age 19 if the child is still enrolled in school. Additionally, if a child becomes disabled before age 22, they may continue to receive benefits longer.

No Restrictions on How to Use the Money

Social Security benefits for children come with no spending restrictions, which means the money can be used for a wide range of purposes, such as school tuition, housing, or groceries. Parents can also invest the money in custodial brokerage accounts that are passed to the child once they reach adulthood.

Keith Fenstad, vice president at Tanglewood Total Wealth Management, states, “It’s additional income for the household,” but it must be used for the benefit of the child.

Since the benefits are designated for the child, parents do not report this money as income on their tax returns. Instead, the child must list it on their own tax return, if applicable. “This could be the only income a minor child has,” says Taibi, noting that such income is unlikely to be taxable unless the child has additional sources of income.

Considering Children’s Benefits When Claiming Social Security

It’s important to note that children can only begin receiving benefits once the parent starts collecting retirement benefits. If a parent claims Social Security before reaching their full retirement age, both the parent’s and the child’s benefits will be reduced. However, claiming early could still result in families benefiting financially in the long run, especially if the children are young.

Fenstad explains, “It might depend on how young the kids are.” Claiming benefits early could allow a child to receive Social Security for a longer period, making it a better financial decision than delaying retirement benefits, especially for families with younger children. Fenstad advises, “You want to be sure you do the math.”

It’s also essential to apply for children’s benefits as part of the parent’s Social Security claim. “It’s not like Social Security is going to call you and ask you to apply for your children,” says Taibi. Applications for children’s benefits can be submitted at any Social Security office or by calling 1-800-772-1213.

Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.