The overlooked Social Security benefit that could help your family today

If you’re an older parent, whether you had a child later in life, are part of a blended “May–December” family, or are raising children, there may be a Social Security rule you haven’t heard of. It’s not widely advertised—but for some families, it could quietly add up to a surprising amount.

Most people think of Social Security as a personal retirement benefit, but the system includes a few lesser-known options that could support your household in unexpected ways. If you're eligible, this one could make a real difference.

The Social Security dependent child benefit: what is it?

Social Security isn’t just for retirees.

If you’re at least 62 and have a child under 17 (or under 18 and still in high school, or any age if disabled before 22), your child may qualify for a monthly benefit—often up to 50% of your full retirement age (FRA) amount.

This can add up to a significant sum, especially if you have more than one eligible child.

Surprised? You’re not alone.

Only about 1% of Social Security recipients are children of retired workers, according to the Social Security Administration (SSA), with an average monthly benefit of around $919.20.

Yet the number of children born to women over 45 has jumped by 450% since 1990, making this benefit more relevant than ever.

“We get more calls on this than any other topic because it’s not advertised by Social Security, so people just stumble upon it,” said Michael Ruger, managing partner at Greenbush Financial Group.

Also read: Three surprising ways your Social Security benefits could be reduced or stopped

Who qualifies—and how much can you get?

Let’s break it down:

You must be at least 62 and eligible for Social Security.

Your child must be unmarried and either:

• Under 18,
• 18–19 and a full-time high school student, or
• Any age if they have a disability that began before age 22.

If you claim Social Security before your FRA (typically 66 or 67), your own benefit will be reduced for life.

But your child’s benefit is based on your full retirement amount, not the reduced benefit you receive for claiming early.

How much could your family receive?

Let’s say your FRA benefit is $2,000 per month. Your eligible child could receive up to $1,000 per month (50% of your FRA benefit).

If you have two eligible children, that’s $2,000 for them—plus your own benefit.

But there’s a catch: the “family maximum.”

Social Security limits the total amount a family can receive on one worker’s record, usually between 150% and 180% of the worker’s FRA benefit.

If your family’s total benefit exceeds this cap, each child’s payment is reduced proportionally.

Also read: Can you really live on Social Security alone? These 10 states say yes

A real-world example

Suppose you’re 62, your FRA benefit is $1,700, but you claim early and receive $1,200. You have four eligible children.

The family maximum is 150% of $1,700, or $2,550. If each child received $850 (half your FRA), the total would be $4,600—well over the limit.

Instead, Social Security subtracts your FRA ($1,700) from the family max ($2,550), leaving $850 to split among the four kids—about $212.50 each.

Also read: Don't lose your benefits! Discover which Social Security services you can still access during a government shutdown

Can you keep working?

Yes, but be aware of the “earnings test.” If you’re under FRA and earn more than $23,400 in 2025, Social Security will withhold $1 in benefits for every $2 earned above that limit.

And in the year you reach FRA, the limit rises to $62,160, with benefits reduced by $1 for every $3 earned over the threshold.

These reductions stop once you reach full retirement age—and your benefits will later be adjusted to account for withheld months.

Many people assume the penalty only affects their own benefit, but as Ruger warns: “People make the mistake and think they’ll take mine but won’t touch my child’s. That’s not correct. They’ll go after the child benefit, too because it’s claimed on your work history.”

In other words, if you earn too much, both your check and your child’s check can be reduced.

Also read: Some retirees may not get the full 2026 Social Security boost—here’s why

Is it worth claiming early for the child benefit?

This is where things get personal. Claiming Social Security early means a permanently reduced benefit for you—but the extra money for your child or children can be substantial.

In some cases, it may even help fund a college education or grow family savings.

Let’s look at a scenario:

• Your FRA benefit: $2,500/month
• Claim at 62: $1,750/month (30% reduction)
• Two kids, ages 8 and 5

At 62: $1,750 (you) + $625 (child 1) + $625 (child 2) = $3,000/month

Over 13 years (if eligibility continues throughout): $445,500 in combined benefits for the parent and both kids.

And if we look even further ahead:

• At 72: $1,750 (parent) + $625 (child 2 only) = $2,375/month
• At 75 and beyond: $1,750/month (parent only)

By age 90, the family could receive $760,500 in total lifetime benefits—compared to $690,000 if the parent had waited until FRA to claim. The trade-off is real, but the timing may work in your favor.

As Andrew Wood, a retirement planning adviser, puts it: “If you have an overfunded retirement plan and have money, the impact of when to take Social Security is not as large. But if you’re underfunded, then increasing Social Security improves outcomes. It may be tempting, but it could hurt your retirement in 10 to 15 years because of the lower payments from claiming early.”

Also read: Are you missing out? Discover the “game-changing” Social Security update that could save seniors $500 annually

Other key considerations

• Tax Benefits: Most children won’t owe federal tax on their Social Security, and most states don’t tax it either.

• Dependency: You can still claim your child as a dependent on your taxes.

• Second Parent’s Income: If you’re married, your spouse’s earnings don’t reduce your family’s Social Security benefit.

• Saving for the Future: Parents can save and invest the child’s benefit—but make sure the account is titled only in the child’s name. As Ruger explains, “Just make sure accounts are titled solely in the child’s name, so SSA can’t demand leftover money back later.”

• Financial Aid Impact: About 20% of a child’s savings may count against need-based financial aid. Still, Ruger reminds parents: “It’s not the end of the world… it was free money from Social Security that can be used to pay for college.”

Also read: New survey reveals how devastating Social Security cuts would be for most seniors

How to apply

Ready to find out if your family qualifies? Here’s what to do:

• Contact Social Security: Call or visit your local SSA office, or start the application at ssa.gov.

• Gather documents: You’ll need your child’s birth certificate, Social Security number, and proof of full-time school attendance if they’re 18–19.

• Prepare your questions: The rules can be complex, so jot down your concerns before your appointment to make sure everything is addressed.

Remember, knowledge is power—especially when it comes to your family’s financial future.

Don’t leave money on the table. Explore your options, crunch the numbers, and make the decision that’s right for you and your loved ones.

Read next:

• Are you missing out on Social Security benefits? Here’s what to know about work credits
• Why you won’t see a Social Security SSI payment in November—here’s what to know
• Social Security benefits could soon be easier to understand under Rep. Smucker’s new bill

Key Takeaways

• Older parents over 62 may be eligible to claim Social Security for themselves and also receive a dependent child benefit for their child under 18, or under 19 if still in school, or any age if the child became disabled before 22.
• There is a family maximum limit (usually 150%–180% of the parent’s full retirement age benefit); if you have multiple children, their total benefits are reduced to stay within this cap.
• If you claim Social Security early, your own monthly benefit is permanently reduced, but your child may still receive up to half your full benefit amount until they are no longer eligible.
• Child benefits are rarely taxed and can be saved for future needs like education. Parents should be cautious if working before FRA, as earnings above the limit can reduce both their own and their child’s checks.

Have you or someone you know received Social Security child benefits? Are you considering claiming early to support your family? Or do you have questions about how this works in your own situation?

Share your stories, tips, and questions in the comments below—your experience could help another member of The GrayVine community!