Welfare
Changes ahead for Social Security Credit: here's the new threshold set for 2025
In order to claim the Social Security credits you need to access the retirement welfare, you have to earn over a certain amount per year.
To be able to claim retirement benefits in the US, you need to earn 40 ‘credits’, which can be earned during each year of work. The maximum that can be earned in a year is four.
From next year, you will need to earn more to receive a Social Security credit. These amounts change from year to year based on the change in the national average wage index.
For 2024, the amount is $1,730 per credit, meaning you will need to earn $6,920 to receive your full allocation. In 2025, this will increase to $1,810.
This increase will affect low earners or part-time workers, as the rise might mean they won’t receive the full four credits next year.
The Social Security Administration has a pamphlet describing how credits are earned and how they are applied to each aspect of Social Security.
Why Social Security credits are so important
There are multiple factors which affect how much you can claim in retirement Social Security payments. These are how much you have earned while while working, your highest salary each year for 35 years, and the age at which you retire at.
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These credits are also used to claim SSDI disability benefits. Not having enough credits will actually prevent you from claiming disability benefits, contributing to more than 20% of disabled Americans living in poverty.
When a person who has worked and paid Social Security taxes dies, certain members of the family may be eligible for survivors benefits. Up to 10 years of work is required to be eligible for benefits, depending on the person’s age at the time of death. Survivors of very young workers may be eligible if the deceased worker was employed for 1.5 years during the three years before his or her death.
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