What are social security credits?

As you work and pay Social Security taxes over your working years, Social Security tracks your earnings through accounting units known as work credits. Social Security requires that you must have accumulated a certain number of credits to qualify for regular Social Security benefits.

Social Security credits are a system of credits that Social Security uses to determine whether an individual meets the minimum work requirements. Typically, Social Security requires applicants to have a minimum of 40 work credits to be eligible for retirement benefits, which is equivalent to at least 10 years of work. For 2022, you earn one credit for every $1,510 in earnings, and you can earn a maximum of 4 credits in one year.

How Social Security Credits Work

You must have accumulated sufficient work credits to qualify for Social Security benefits. Work credits are sometimes referred to as quarters of coverage. Typically, you earn credits based on your work record, and you can earn up to 4 credits each year. You must have worked and paid Social Security taxes to earn work credits.

For 2022, you can earn one credit for every $1,510 in wages from employment or self-employment. If you earn $6,040, you will get all four credits, which is the highest number of credits you can get in a year. Since these limits apply to everyone, this system of credits provides a level playing field so that people with large incomes cannot benefit unfairly to the disadvantage of those with meager earnings.

If you earn more than 40 credits during your lifetime, there will be no impact on your benefit’s amount since credits are used only for eligibility purposes. If you have less than 40 credits when you retire, you can accumulate more credits by working in a covered job in retirement. However, you may still qualify for benefits on a spouse’s work record.

How many credits do you have?

Social Security maintains a record of your earnings and work credits since your first paycheck. You can track this information at any time by checking your Social Security statement.

You can get your Social Security statement by logging into your My Social Security account to view, print, or download your benefits statement. You can mail a filled-out “Statement for Social Security Statement” (Form SSA-7004) to request a mailed paper statement.  

The statement will show you the number of credits you have and if it is sufficient to apply for Social Security benefits. The statement also estimates the benefits you will receive if you decide to take benefits earlier, at full retirement age, or if you delay taking benefits until 70.

Credit requirements for retirement benefits

Anyone born in 1929 or later needs 40 credits to qualify for retirement benefits. Social Security retirement benefits are available to older workers above age 62, and the amount you receive in benefits depends on your average indexed monthly earnings (AIME) over your 35 highest earning years. With less than 40 work credits, your credits will be saved to your record, but you will not have qualified for retirement benefits.

Credit requirements for disability benefits

One of the exemptions when Social Security beneficiaries are not required to meet the 40 credits threshold is disability benefits. You can become eligible to receive disability benefits if you become disabled at a younger age and with fewer credits. The number of years you need to work, and the credit you need to earn depends on the claimant’s age.

If you become disabled before age 24, you can apply for Social Security Disability benefits with only 6 credits, as long as you earned these credits in the three years prior to the disability.

If you are above age 24 but below 31, you must have half the number of credits possible from age 21 to the age when you first became disabled. For example, if you became disabled when you reach age 29, you need to have worked for 4 years of the last 8 years, or 16 work credits since age 21.

If you become disabled when you reach age 31, you will need a minimum of 20 credits to a high of 40 credits depending on your age. You must have acquired at least 20 of the work credits in the prior 10 years before you became disabled.

Credit requirements for survivor benefits

The number of credits you need for surviving family members to qualify for survivor benefits depends on your age when you die. The younger you are at the time of death, the fewer credits you must have earned for surviving family members to receive benefits. If you have accumulated at least 6 work credits within the three years preceding your death, your spouse and minor children will be eligible to receive survivor benefits.

The amount of benefits that surviving family members qualify to receive varies based on your earnings record. The more you earned in lifetime earnings, the higher the benefits your dependents will receive. Social Security bases the survivor benefits based on how much the deceased beneficiary would have received at full retirement age had they lived. Also, the age at which the surviving spouse or other surviving family members begin taking benefits will affect the size of their benefits.