To receive Social Security benefits, you must meet certain eligibility requirements, and one of the most crucial is earning enough work credits. Social Security credits are earned through your work history and the Social Security taxes deducted from your paycheck. These credits are what ultimately qualify you for retirement, disability, or survivor benefits. Without meeting the necessary credit threshold, you won’t be eligible to receive any Social Security payments, which can significantly impact your financial future.
In 2024, for every $1,640 you earn, you receive one Social Security credit. You can earn up to four credits each year, and while the amount of your earnings doesn’t affect how many credits you get, it does impact the size of your benefits later. The number of credits you earn throughout your working life is vital to determining your eligibility for Social Security. However, the credits themselves do not determine how much money you’ll receive—that’s based on your lifetime earnings.
To qualify for Social Security retirement benefits, you must earn at least 40 credits, which typically equates to about 10 years of work. If you have fewer than 40 credits when you reach retirement age, you won’t qualify for retirement payments. This means you won’t get those regular Social Security checks, which are often a critical source of income for retirees. If you find yourself nearing retirement with fewer than 40 credits, it’s important to plan for alternative income sources or extend your working years to build up enough credits.
The rules for disability benefits are slightly different. The number of credits required to qualify for disability depends on your age at the time you become disabled. For example, if you are under the age of 24, you may qualify for disability benefits with only six credits (1.5 years of work) earned in the three years leading up to your disability. If you are older when you become disabled, you will need more credits to qualify, with the maximum being 40 credits for older workers.
Survivor benefits also depend on your work credits. If you pass away, your spouse or children may be able to receive Social Security survivor benefits if you have earned enough credits. Generally, the younger you are when you pass away, the fewer credits you need for your survivors to receive payments. However, there is a special rule that allows some family members, like your children or a spouse caring for your children, to qualify for survivor benefits even if you don’t have the full 40 credits. Under this rule, your family could receive benefits if you’ve worked for at least 1.5 years in the three years prior to your death.
If you’re unsure about how many credits you’ve earned, you can check your Social Security record by creating a My Social Security account online. This will show you how many credits you’ve accumulated and give you an estimate of your future benefits. It’s a good idea to monitor your earnings record regularly, especially as you approach retirement age or if you’re at risk for disability. Having enough credits is key to securing your Social Security payments, and if you don’t meet the credit requirement, you could miss out on these essential benefits.
Failing to meet the required number of Social Security credits can lead to the loss of payments, which may leave you without a key source of income in retirement or during a disability. Staying on top of your credit count and planning your work years accordingly can help ensure that you don’t lose out on Social Security benefits when you need them the most.
