Social Security credits are earned through work and payroll taxes, not accumulated like savings

You earn Social Security credits by working and paying Social Security taxes on your wages. Each year, the Social Security Administration sets a dollar amount — in 2024, you earn one credit for every $1,730 of wages you make, up to a maximum of four credits per year. The threshold changes annually based on national wage trends. You do not choose how many credits to earn in a year; the number is determined by how much you worked and paid into the system.

Credits are tied to the calendar year you earn them, not the calendar year you turn a certain age. If you earned $6,920 in 2024, you would have earned four credits for that year. If you earned $3,460, you would have earned two credits. The Social Security Administration tracks your credits automatically through your Social Security number and your employer's tax reports.

You need a certain number of credits to be may be able to access for retirement benefits, survivor benefits, or disability benefits. Most people need 40 credits total to receive retirement benefits — roughly 10 years of work at full-time earnings. For survivor and disability benefits, the requirement is lower and depends on your age when you become disabled or when you die.

Key Takeaways

  • You earn one credit for every $1,730 of wages in 2024, with a maximum of four credits per year, and this dollar amount increases each year.
  • Credits are earned automatically through payroll taxes and tracked by Social Security using your Social Security number.
  • You need 40 credits total for retirement benefits, which typically takes about 10 years of full-time work.
  • Younger workers need fewer credits to receive disability or survivor benefits than older workers do.
  • Self-employed people earn credits the same way as employees, but they pay both the employee and employer portion of Social Security tax.

The annual credit threshold changes every year

The dollar amount you need to earn to get one credit is not fixed. The Social Security Administration adjusts it each year based on the national average wage index. This means the threshold goes up most years, though it can stay the same if wages do not rise. In 2023, you needed $1,640 per credit; in 2024, it rose to $1,730. The Social Security Administration announces the new threshold in October for the following year.

This annual adjustment protects the system from inflation. If the threshold never changed, workers earning the same real wages would earn fewer credits over time as the dollar lost value. By raising the threshold each year, the system keeps pace with wage growth.

You can find the current year's credit threshold on the Social Security Administration website, or you can call 1-800-772-1213 to ask. Your Social Security statement, which you can view online at ssa.gov, also shows how many credits you have earned so far.

How credits connect to your benefit amount

Credits determine whether you can receive benefits, but they do not directly determine how much you receive. Your benefit amount is calculated from your highest 35 years of earnings. The Social Security Administration averages those earnings, adjusts them for inflation, and applies a formula to arrive at your monthly benefit.

If you have fewer than 35 years of earnings on record, the calculation includes zeros for the missing years, which lowers your average. This is why people who took time out of the workforce for caregiving, illness, or other reasons often receive lower benefits than they would have with 35 full years of work.

Having 40 credits does not mean you have 35 years of earnings. You could earn four credits in one year and then work part-time for many years, earning only one or two credits annually. The 40 credits show you have worked long enough to be may be able to access; your actual benefit depends on how much you earned during those working years.

Credits for self-employed workers and non-wage earners

If you are self-employed, you earn credits the same way as employees do — based on your net self-employment income. You pay both the employee and employer portions of Social Security tax, which is 15.3 percent of your net earnings (12.4 percent for Social Security, 2.9 percent for Medicare). You report this on Schedule SE when you file your taxes, and the Social Security Administration records your credits based on your reported income.

If you have never worked or worked only in jobs not covered by Social Security — such as certain government positions or railroad work — you may not have any credits. Some people who worked for a government employer that did not pay into Social Security can still receive benefits based on a spouse's or ex-spouse's record, though a different formula may explore.

Volunteer work, unpaid caregiving, and other non-wage activities do not earn credits, even though they contribute to your family and community. Only paid work — whether as an employee or self-employed — counts toward Social Security credits.

How many credits you need for different types of benefits

Retirement benefits require 40 credits, which most people earn over about 10 years of full-time work. You can begin receiving reduced retirement benefits at age 62, but you must still have 40 credits. If you wait until your full retirement age (66 to 67, depending on your birth year), your monthly benefit is higher. If you wait until age 70, it is higher still.

Disability benefits require fewer credits, and the number depends on your age when you become disabled. A worker who becomes disabled at 24 might need only 6 credits (roughly 1.5 years of work). A worker who becomes disabled at 31 might need 20 credits. At 42 and older, you generally need 20 credits earned in the 10 years before you became disabled. The Social Security Administration can tell you the exact requirement for your age.

Survivor benefits — paid to your family if you die — also depend on your age at death and how many dependents you have. Generally, you need between 6 and 40 credits, depending on your age. A younger worker who has earned 6 credits may have enough for survivor benefits to be paid to a spouse caring for young children, even though 6 credits would not be enough for that worker's own retirement benefits.

Checking your credits and correcting errors

You can see how many credits you have earned by creating an account on ssa.gov and viewing your Social Security Statement. The statement shows your earnings history year by year and the number of credits you earned each year. You can also request a printed statement by calling 1-800-772-1213.

If you see an error — such as earnings that were not recorded or were recorded under the wrong name — you should report it to Social Security as soon as possible. You have a limited time to correct errors, usually three years, three months, and 15 days from the end of the year the earnings were made. Bring your W-2 forms or tax returns as proof of the earnings. If you are self-employed, bring your tax return and Schedule SE.

Errors are more common than many people realize, especially for people who changed their name, worked under a different Social Security number, or had employers who made mistakes on tax forms. Catching and correcting these errors before you turn 60 can significantly increase your future benefits.

Credits do not expire or disappear

Once you earn a credit, it stays on your record permanently. You do not lose credits if you stop working, take time off, or change jobs. If you earned 20 credits by age 30 and then did not work again, those 20 credits would still be there when you turned 62. You could then work part-time for a few more years to reach 40 credits and become may be able to access for retirement benefits.

This permanence is important for people who take breaks from work for caregiving, education, health reasons, or other life events. The credits you earned before the break do not disappear. You straightforward need to earn enough additional credits to meet the requirement for the benefit you are seeking.

However, credits do not earn interest or grow in value over time. A credit earned in 1990 counts the same as a credit earned in 2024. What changes is the dollar threshold needed to earn each credit, which rises with wages.

Frequently Asked Questions

Can I earn more than four credits in one year?

No. The maximum is four credits per year, regardless of how much you earn. If you earned $100,000 in a single year, you would still earn only four credits for that year. However, high earnings in one year do increase your benefit amount because your benefit is based on your 35 highest-earning years, not on the number of credits you have.

Do credits from working in another country count?

It depends on the country and the agreement between that country and the United States. Some countries have totalization agreements with Social Security that allow work credits earned there to count toward U.S. benefits. Others do not. Contact Social Security or the embassy of the country where you worked to find out whether your work there can be credited.

What happens if I never earn 40 credits?

You would not be may be able to access for retirement benefits based on your own work record. However, you might be may be able to access for benefits based on a spouse's, ex-spouse's, or parent's record if you meet other requirements. You can contact Social Security to explore what options may be available to you.

Do credits count toward Medicare?

You need 40 credits to be may be able to access for Medicare at age 65, the same as for Social Security retirement benefits. However, some people who do not have 40 credits can still enroll in Medicare Part A (hospital insurance) by paying a monthly premium. Contact Social Security or Medicare for details about your specific situation.

If I work part-time, how long will it take me to earn 40 credits?

It depends on how much you earn. If you earn $1,730 or more per year (in 2024), you will earn four credits that year and reach 40 credits in 10 years. If you earn less, it will take longer. For example, if you earn $865 per year, you would earn two credits per year and need 20 years to reach 40 credits.