Social Security Administration | Publication No. 05-10704

What are work credits for social security?

Work credits are a measure of an individual’s earnings used to determine their eligibility for Social Security benefits. Individuals earn work credits by working and paying taxes into the Social Security system. The number of work credits needed to qualify for benefits depends on the individual’s age and the type of benefit they are seeking. In general, individuals need to earn 40 work credits to be eligible for retirement benefits and fewer work credits to be eligible for disability or survivor benefits.

How long does it take to earn 40 work credits?

In 2023, an individual earns one work credit for each $1,640 of wages or self-employment income they earn. Therefore, it takes an individual earning at least $1,640 per year, a total of 40*1640 = $65,600 to earn 40 work credits. However, the maximum number of credits that can be earned in one year is 4, so it would take at least 10 years of earning the required amount to earn 40 work credits.

Will I ever lose my work credits?

Work credits are based on your earnings and taxes paid into the Social Security system, and once earned, they generally do not expire. However, there are some situations where work credits may be lost or reduced, such as:

• If you are receiving Social Security benefits before you have earned enough credits to be fully insured, your benefit amount may be reduced.
• If you return to work and earn more than the annual limit, some of your previous work credits may be “redesignated” to the new year.
• If you are receiving disability benefits and you return to work, your benefits may be suspended or terminated if you are able to perform substantial work.

It’s important to note that the rules and regulations for Social Security benefits are subject to change and can be complex, so it’s a good idea to consult with the Social Security Administration or contact an annuity specialist for guidance on your specific situation.

What happens when I die?

When an individual dies, their eligibility for Social Security benefits may be passed on to certain family members. The specific benefits that may be available depend on the individual’s work history and the type of benefit they were receiving. The following are some examples of benefits that may be available to family members after an individual’s death:

• Survivor benefits: A widow or widower who is at least 60 years old (50 if disabled) may be eligible to receive a benefit equal to as much as 100% of the deceased worker’s benefit.
• Children’s benefits: Children who are unmarried and under the age of 18 (or 19 if they are full-time students) may be eligible to receive a benefit equal to as much as 75% of the deceased worker’s benefit.
• Parent’s benefits: A parent who was dependent on the deceased worker for at least half of their support may be eligible to receive a benefit equal to as much as 82.5% of the deceased worker’s benefit.