What's Happening
18 minutes ago

Asia Ex-India And Europe Markets Advance, Gold Retreats From All Time High - Global Markets Today While US Slept

benzingabenzinga.com
19 minutes ago

Want $10,000? Invest $2,500 Into XRP (Ripple) and Wait 4 Years.

foolfool.com
21 minutes ago

Lyft CEO Sees Autonomous Vehicles Including Alphabet's Waymo As Game-Changer For Ride-Hailing, Not A Threat: 'The More AVs… The Better Lyft Does'

benzingabenzinga.com
24 minutes ago

Buying This Artificial Intelligence (AI) Chip Stock Is a No-Brainer After This Development

foolfool.com
24 minutes ago

Looking for Dividend Stocks to Buy in February? Consider These 3 Dow Jones Components.

foolfool.com
39 minutes ago

1 Must-See Quote for AI Stock Investors From Arm Holdings' CEO

foolfool.com
46 minutes ago

Could Dogecoin Make You a Millionaire in 2025?

foolfool.com
47 minutes ago

This Stock Could More Than Double By 2029, According to Billionaire Bill Ackman

foolfool.com
49 minutes ago

Intel Just Pulled Ahead in This Key Market

foolfool.com
54 minutes ago

Did China's DeepSeek Just Crash and Burn President Trump's $500 Billion AI Stargate Project?

foolfool.com
55 minutes ago

US Stocks Set For A Cautious Start Ahead Of Inflation Data: Expert Says 'Strong Bull Markets Tend To Roar Back To Life After Corrections'

benzingabenzinga.com
59 minutes ago

Got $3,000? 3 Artificial Intelligence (AI) Stocks to Buy and Hold for the Long Term

foolfool.com
1 hour ago

2 Stocks Down 47% and 82% to Buy Right Now

foolfool.com
1 hour ago

What's a Fair Price to Buy Johnson & Johnson Stock?

foolfool.com
1 hour ago

Is Berkshire Hathaway Stock a Buy Now?

foolfool.com
1 hour ago

Is Archer Aviation Stock Worth the Hype?

foolfool.com
1 hour ago

'Racism Has No Place in Missouri': State Attorney General Sues Starbucks Over Hiring Policies

benzingabenzinga.com
1 hour ago

Geopolitics And Resource Nationalism Are Choking The Commodity Supply

benzingabenzinga.com
1 hour ago

Should You Buy Affirm While It's Below $85?

foolfool.com
1 hour ago

Should You Buy Bank of America While It's Below $50?

foolfool.com

It’s Getting Harder to Qualify for Social Security Benefits in Retirement. Here’s the Reason Why

One of the biggest Social Security myths out there is that everyone is entitled to a monthly benefit once they reach a certain age. But that’s not how the program works.

Generally speaking, the way to get Social Security benefits in retirement is to earn them by working and paying into the program. There can be exceptions for people who don’t work but are eligible for spousal benefits or survivors benefits. But if you want to guarantee yourself those benefits for your retirement, then it’s important to make sure you’ve earned enough work credits in your lifetime.

A person in a hard hat and safety vest standing next to construction materials.

Image source: Getty Images.

Specifically, Social Security requires a total of 40 work credits to be eligible for benefits. But the tricky thing is that you’re only allowed to earn up to four work credits per year. This means that you basically have to work in some capacity for at least 10 years to qualify for Social Security.

Meanwhile, the value of a work credit can change from one year to the next — and that’s precisely what’s happening in 2025.

An important change to know about

On Oct. 10, the Social Security Administration announced a number of key changes to the program that are set to take effect in 2025. One major change is a 2.5% cost-of-living adjustment. Another is a higher wage cap for Social Security tax purposes — $176,100, up from $168,600 in 2024.

An additional big change that’s coming in 2025 is the value of a single work credit. Currently, it takes $1,730 in earnings to earn one work credit. Next year, it will take $1,810. That’s something to keep in mind if you work part-time but want to make sure you’re able to get Social Security down the line.

However, you should know that if you work full-time, this change shouldn’t really affect you, even if you only earn minimum wage. If that’s the case, if you earn the minimum wage for 40 hours a week over 50 working weeks, that’s more than enough income to secure your four work credits for 2025.

Pay attention to Social Security changes

Even though Social Security has been around for a long time, the program tends to undergo changes on a yearly basis. It pays to keep tabs on those, regardless of your age.

You might assume you don’t need to bother reading up on Social Security if you’re nowhere close to retirement. But if you don’t understand what it takes to get benefits, you might end up missing out on that key income source once you’re no longer able to work at all.

Of course, if you’re someone who works so part-time that you’re unable to accumulate 40 work credits in your lifetime, it may be that you have somebody else’s income to fall back on, like a spouse’s. You may be eligible for some type of Social Security benefit down the line based on their earnings record. But it’s best to know the rules so you know what to expect once you get older.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Related Posts

So you have $100,000 and you want to build it into $1 million by retirement. That’s great! Even if you have less — perhaps a

Okay, folks. It’s time to get serious about Social Security. I don’t like to be the person who sounds alarms and causes unnecessary panic. But

Image source: Getty Images The best credit cards have a lot of perks — cash back, travel rewards, purchase protection, and more. But what happens

Social Security benefits for spouses are a common source of confusion. MassMutual reports that 25% of surveyed adults near retirement age were unaware that spouses