Earning Social Security benefits requires accumulating a certain number of work credits over your lifetime. Most people need 40 credits to qualify for retirement benefits. Here are quick answers about Social Security credits:
What are Social Security credits?
Social Security credits are based on your annual earnings. When you work and pay Social Security taxes, you earn credits that enable you to qualify for Social Security benefits later in life.
How many credits do I need to get Social Security benefits?
You need 40 credits to qualify for retirement benefits. That’s equal to 10 years of work. Younger people need fewer credits to qualify for disability benefits or for their family members to qualify for survivor benefits.
How much work do I need to earn a credit?
In 2023, you earn one credit for each $1,640 of wages or self-employment income. You can earn up to four credits per year. Most people need 10 years of work (40 credits) to qualify for benefits.
How can I check my Social Security earnings and credits?
You can check your Social Security Statement online via your my Social Security account to see your lifetime earnings and number of credits earned to date. This lets you know if you have enough credits yet.
Do credits expire?
No, Social Security credits never expire, even if you stop working for a period of time. The credits remain on your Social Security record forever.
Can I earn future credits?
Yes, you can continue earning credits as long as you have enough earnings from work. Many people earn more than the 40 credits needed over their working lifetimes.
What if I don’t have enough credits yet?
If you do not yet have the 40 credits needed for Social Security benefits, keep working to earn more. Your credits will accumulate over time until you become eligible.
What if I worked for an employer who did not withhold Social Security taxes?
If an employer did not withhold Social Security taxes from your paycheck, then you likely did not earn credits from that job. This could make it harder to qualify for benefits later. You may need to work longer to earn the credits you are missing.
Can I buy or inherit credits from my spouse?
No, you cannot buy credits or inherit them from a spouse. You must earn all credits through your own work history by paying Social Security taxes on your earnings.
What if I also worked in another country?
If you worked and earned credits in another country, the U.S. may be able to combine those credits with your U.S. credits to help you qualify for benefits.
How are credits calculated for military service?
Active duty military service from 1957 on counts toward Social Security credits. Generally you earn one credit for each calendar quarter while on active duty.
How are credits calculated for railroad workers?
Railroad workers earn credits based on railroad service months and compensation rather than calendar quarters. A credit year requires credit for 12 months of railroad service.
Can I use my credits if I already collect another government pension?
If you get a pension from employment not covered by Social Security, such as some federal, state or local government work, your Social Security benefits may be reduced but you can still qualify and collect based on your credits.
Conclusion
Checking your Social Security Statement is the best way to see if you have earned the required 40 credits yet. Social Security credits reflect your lifetime earnings. Most people need 40 credits (10 years of work) to qualify for Social Security retirement benefits. You can continue earning credits as long as you keep working. If you are short on credits, you need to work longer to qualify for benefits. Your credits will remain on your record once earned.
Frequently Asked Questions
How are Social Security credits earned?
You earn Social Security credits based on your total wages or net self-employment income for the year. In 2023, you get one credit for each $1,640 of earnings, up to four credits per year. Most people need 40 credits (10 years of work) to qualify for retirement benefits.
What happens to credits when I change jobs?
Your Social Security credits stay with you when you change jobs. All of your past earnings and accumulated credits remain on your Social Security record for life and continue to count toward eligibility.
Can I check my Social Security earnings record online?
Yes, you can view your lifetime Social Security earnings and number of credits to date by creating a my Social Security account online at ssa.gov/myaccount. This lets you check your progress.
What if my name changes due to marriage or divorce?
Name changes do not affect your Social Security earnings or credits. All your credits remain under your Social Security number, even if your name changes.
Do childcare years count toward Social Security credits?
Years spent out of the workforce for caregiving do not earn Social Security credits. However, you may qualify for Social Security benefits based on your spouse’s work record.
What if I worked while attending school?
You earn Social Security credits like any job if you worked while attending school. All wages that had Social Security taxes withheld count toward future benefits.
How does vesting work for Social Security credits?
Social Security credits never expire or vest. All the credits you earn over your working lifetime remain on your record permanently once earned.
Are credits prorated for part-time work?
No, part-time earnings are credited in the same manner as full-time earnings. The dollar amount subject to Social Security taxes, not hours, determines credits earned.
What if I’m self-employed?
Self-employed individuals earn credits the same way, based on the amount of net earnings from self-employment that is subject to Social Security taxes.
How do I qualify for disability or survivor benefits?
For disability benefits, you generally need 20 credits earned in the last 10 years. For survivor benefits, widows and children typically need fewer credits based on the deceased worker’s earnings record.
What if I also worked for an employer who didn’t withhold Social Security taxes from my paycheck?
If you worked for an employer who did not withhold Social Security payroll taxes, you likely did not earn any credits from that job. You would need to earn those credits from other work.
Historical Social Security Credit Thresholds
The earnings required for a Social Security credit have increased over time. Here are the credit thresholds from earlier years:
| Year | Earnings Required Per Credit |
|---|---|
| 2000 | $780 |
| 2005 | $920 |
| 2010 | $1,120 |
| 2015 | $1,220 |
| 2020 | $1,410 |
As you can see, the annual earnings required for each Social Security credit has risen over time with average wage levels. In 2023, you need $1,640 of earnings to get one credit.
Social Security Calculators
You can use online Social Security calculators to estimate your future retirement benefits based on your real earnings history and projected future earnings. Some popular calculators include:
- Social Security Retirement Estimator – From SSA website
- AARP Social Security Benefits Calculator – Detailed estimates and projections
- Bankrate Social Security Calculator – Adjust assumptions
These tools can help you estimate your future monthly payments based on your real Social Security earnings record and additional assumptions. This can help you determine if you are on track to have enough credits at retirement.
Steps to Check Your Social Security Earnings and Credits
Here is a step-by-step guide to checking your earnings history and credits via your Social Security Statement online:
- Go to ssa.gov/myaccount and either create an account or log in.
- In your account, click on “Earnings Record” to view your lifetime earnings by year.
- Scroll down to see the “Your Estimated Benefits” section.
- This shows your lifetime Social Security earnings and credits to date.
- Compare your credits earned so far to the 40 needed to qualify for retirement benefits.
- If you have earned 40 credits, you will qualify for benefits.
- If not, continue working to earn more credits each year until you reach 40.
Checking your statement periodically lets you track your progress toward the 40 credits you need for Social Security later in life.
Getting Future Credits
If you do not yet have the required 40 credits, keep earning more with additional work. Here are some tips:
- Continue at your current job and keep accumulating credits
- Find a new job with higher pay to earn credits faster
- Get a part-time job for supplemental earnings and credits
- Do freelance work or consulting to earn extra credits
- Start a small business so you can earn credits as a self-employed individual
The key options are either increasing your earnings at your current job or taking on additional work. Four credits per year is the maximum that counts, so focus on boosting your annual income to maximize credits.
Credits Needed for Disability Benefits
While you need 40 credits for retirement benefits, individuals who become severely disabled at a younger age can qualify for Social Security disability benefits with fewer credits. The disability credit requirements are:
- Before age 24 – Six credits required
- Ages 24 to 31 – Credits needed equal to half your age
- Age 31 or older – Twenty credits required in last 10 years
So for example, if you became disabled at age 30, you would need 15 credits to qualify for disability benefits. The rules allow younger workers to qualify with fewer credits.
Survivor Benefits for Spouses and Children
If you pass away and have earned enough credits, your surviving spouse and dependent children may qualify for Social Security survivor benefits based on your earnings record. Here are the credits required:
- Surviving spouse with children – 40 credits needed
- Surviving spouse at full retirement age – 40 credits needed
- Surviving spouse aged 60 to full retirement age – As few as 20 credits needed
- Surviving children up to age 16 – 40 credits needed
- Dependent disabled children – 40 credits needed
In this situation, your survivors can collect benefits based on your earnings history if you have earned at least 20-40 credits depending on their situation. This provides income security for your family.
Rules for Immigrants
Immigrants to the U.S. generally must work and earn credits only after arriving in the country legally. However, some special rules may apply, such as:
- Lawful residents can qualify based only on U.S. earnings
- Some can prorate benefits based on U.S. and foreign earnings
- Those from countries with totalization agreements may qualify under special rules
In general, an immigrant needs 10 years of work (40 credits) after arriving to qualify for Social Security retirement benefits based on U.S. earnings. The SSA administers rules on benefit eligibility for immigrants.
Options for Military Service Members
Active duty military personnel can earn extra credits in addition to any from civilian work. Each calendar quarter on active duty, after 1956, counts as a $1,640 earnings quarter regardless of actual income. So those who enlisted younger need fewer civilian quarters to get 40 credits.
Social Security Benefit Amounts
While you need 40 credits to qualify for Social Security, your actual benefit amount is based on your average earnings over your 35 highest years of earnings. Higher lifetime earnings result in larger monthly payments. Benefits are calculated using a formula based on your earnings history and the age you start benefits.
How to Boost Your Social Security Payments
While 40 credits are needed to qualify for minimum Social Security benefits, you can take steps to increase your payments:
- Earn more – Higher lifetime income boosts your benefit payments
- Work longer – Delaying benefits will increase payments once you do start
- Review your earnings record – Correct any errors to raise benefits
Carefully reviewing your lifetime earnings on your Social Security statement can help you identify and rectify any mistakes that may be lowering your benefit amount. This step is important.
Social Security Resources
For more help understanding Social Security credits and planning your retirement benefits, check out the following resources:
- Social Security Retirement Benefits homepage – Information directly from the SSA
- SSA Publication: How You Earn Credits – Details on credit eligibility
- AARP Social Security Resource Center – Articles, calculators, tips
- Local SSA Office – Find a nearby Social Security office to ask questions
Consulting these free Social Security resources can provide greater insight into how credits work, how your benefits are calculated, and how to maximize your future payments through smart planning.
Conclusion
Checking your Social Security Statement and understanding how credits are earned are key to determining if you have accumulated the required 40 credits to qualify for retirement benefits. One credit is earned annually for each $1,640 in earnings, up to four per year. Most people need 40 credits equal to 10 years of work. You can check your earnings record and credits online via your Social Security account. If you have not earned 40 credits yet, options include working longer at your current job or taking a second job to boost your earnings and credits. Your benefit amount in retirement depends on your 35 highest years of earnings. Planning ahead and regularly checking your earnings record can help ensure you qualify for the maximum Social Security benefits later in life.