Social Security credits are a system used by the United States government to measure a person’s eligibility to receive Social Security benefits, such as retirement, disability, and survivor benefits. They accrue by working and paying Social Security taxes through U.S. employment.
A worker earns Social Security credits based on reported employment income in a year. In 2024, one credit was awarded for every $1,730 earned, up to a maximum of four credits per year. Once a person reaches the amount needed for those four annual credits ($6,920 in 2024), they are considered to have earned the maximum credits for that year, regardless of how much more they earn.
Why you have to accumulate 40 work credits and what will happen in 2025
If you want to be eligible for retirement benefits, a person must have accumulated the minimum of 40 work credits, which is equivalent to 10 years of working life. Whether consecutively or intermittently, it does not matter because what is relevant here is that that number of years is accumulated.
During these years, it is not necessary to earn large sums of money, but it is necessary to reach the minimum threshold to obtain the required credits each year.
Starting in 2025, the amount needed to earn a credit will rise to $1,810. This means that $7,240 in annual income will be needed to earn the four credits allowed per year. This adjustment is made annually based on the national average salary index.
The formula used to calculate this increase is: 2025 Credit Value = $1,978 Credit × (2023 Average Wage Index ÷ Average Wage Index $1,978).
This change will especially affect people with low incomes or part-time jobs, as it will be more difficult for them to reach the income threshold necessary to accumulate the four credits.
How to get the maximum Social Security retirement in 2025
In 2025, the maximum monthly Social Security check will be $5,108, a significant increase from $4,873 in 2024 thanks to the 2.5% cost of living adjustment (COLA). Although this figure may seem particularly large, keep in mind that only a small percentage of beneficiaries will qualify to receive this full amount. Still, there are strategies to optimize profits, even if the maximum payout is not reached.
The maximum check is only received by eligible workers who have worked at least 35 full years and earned the maximum taxable limit in each of those years. Additionally, they must have delayed retirement until age 70, because that increases the monthly increase year after year, beyond the age of 65. Finally, you must have paid all your Social Security taxes during your active working life.
To put the maximum benefit in perspective, average monthly earnings for active workers in the third quarter of 2024 were $4,908 per month (or $1,165 per week), according to the Bureau of Labor Statistics. This means that, with a check of $5,108, recipients of the maximum payment exceed even the average earnings of those still in the workforce.