Older Parents May Qualify for a Little-Known Social Security Benefit
Older parents may be eligible for an overlooked Social Security benefit that can significantly increase their family’s lifetime income, according to financial experts.
If you’re 62 or older, you may be able to claim Social Security and also collect dependent benefits for your child. This allows your eligible child to receive up to 50% of your full retirement age (FRA) benefit each month — even if you start claiming your own benefits early, before age 67.
Although this benefit is rarely discussed, about 1% of Social Security recipients in January were children of retired workers, receiving an average of $919.20 per month, according to the Social Security Administration. At the same time, births to women aged 45 and older have risen by 450% since 1990. Some of these cases come from older parents with young children or from marriages with large age differences.
As this trend grows, more families could qualify for these payments. While this strategy isn’t right for everyone, some parents say the extra income has helped them build college savings for their kids.
“We get more calls about this than anything else because Social Security doesn’t promote it — people just happen to discover it,” said Michael Ruger, managing partner and CIO at Greenbush Financial Group. “The younger your child is, the larger the total benefit can be.”
How the Social Security Child Benefit Works
You may qualify if:
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You are 62 or older and eligible for Social Security.
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Your child is unmarried and:
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Under age 18, or
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A full-time student aged 18–19, or
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Has a disability that began before age 22.
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If you start claiming benefits before reaching FRA, your personal benefit amount will be reduced permanently. However, your child can begin receiving up to half of your full retirement benefit until they age out.
What If You Have Multiple Children?
There’s a family maximum — usually between 150% and 180% of your full retirement benefit. If all eligible children’s combined benefits exceed that cap, each child’s payments are reduced proportionately. Your own benefit is not reduced.
Example:
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FRA benefit: $1,700/month
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Claimed at age 62: $1,200/month
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Four eligible children
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Family maximum: $2,550 (150% of $1,700)
Each child would normally receive $850 (half of FRA), but that would exceed the family cap. Instead:
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$2,550 family limit − $1,700 parent benefit = $850 left for children
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$850 ÷ 4 children = $212.50 per child/month
Can You Still Work While Claiming?
Yes, but income limits apply before FRA:
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In 2025, if you’re under FRA, Social Security withholds $1 for every $2 earned over $23,400.
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In the year you reach FRA, they withhold $1 for every $3 earned above $62,160 until the month you reach FRA.
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These reductions are eventually credited back through slightly higher payments after FRA.
Ruger warns: “People think only their benefit is reduced, not the child’s. But since your work history triggers both payments, excess earnings can reduce or eliminate the child benefit too.”
Is Claiming Early for Child Benefits Worth It?
It depends.
“If your retirement savings are strong, the decision to claim early matters less,” said Andrew Wood of Daniel A. White & Associates. “But if you don’t have enough saved, early claiming may hurt you 10–15 years later because your monthly Social Security stays permanently lower.”
However, for others, the combined family income makes early claiming worthwhile.
Example scenario:
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Parent’s FRA benefit: $2,500/month
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At 62 (30% reduction): $1,750/month
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Two children, ages 8 and 5
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Family maximum limit assumed: $3,750
Benefits over time:
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Age 62: $1,750 (parent) + $625 + $625 = $3,000/month
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Age 72: $1,750 + $625 (only youngest child still eligible)
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Age 75 onward: $1,750 only (both children aged out)
Total over 13 years: $445,500
Lifetime total by age 90: $760,500
If the parent waited until age 67 to claim, the lifetime total would be around $690,000.
Other Key Points to Consider
Michael Ruger notes several additional advantages:
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Children’s benefits are typically tax-free.
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You can still claim your child as a dependent on your taxes.
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The second parent can continue working without reducing the benefit.
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You can invest the child’s benefits — as long as the account is in the child’s name — and use it for their future expenses.
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Only about 20% of a child’s savings is counted in college financial aid calculations.
“It’s essentially free money from Social Security that can help cover future college costs,” Ruger adds.
