As many as 2.6 million seniors aged 60 and older may miss out on Social Security benefits because they don’t have enough work credits. To qualify, individuals must earn 40 credits by working and paying Social Security taxes. Many seniors who worked part-time or were in informal jobs may not meet this requirement, putting their retirement at risk.
Understanding Work Credits
Work credits are earned through employment, with a maximum of four credits attainable per year. In 2024, one credit requires $1,640 in earnings, so someone would need to earn at least $6,560 in a year to gain four credits. Once an individual accumulates 40 credits, they become eligible for Social Security retirement benefits. However, those who have worked fewer years or held jobs without reported income may struggle to meet this threshold, resulting in lost benefits.
How to Secure Your Social Security Eligibility
If you’re nearing retirement age and concerned about your eligibility, the first step is to check your Social Security Statement through the Social Security Administration (SSA) website. This document provides a summary of your work history and credits earned. If you’re short of credits, you may still have time to earn additional credits by working part-time, taking on freelance projects, or ensuring that your reported income reflects your full earnings. These measures will help secure the necessary credits for future benefits.
For those with limited time before retirement, it’s important to explore alternative income options or other government programs that may provide financial assistance during retirement.
Why This Matters
Without sufficient work credits, millions of seniors could miss out on Social Security payments that are vital for covering essential expenses such as housing, healthcare, and food. Planning ahead and ensuring you meet the 40-credit requirement is critical for financial security during retirement.
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To read more about this topic and to ensure you qualify for benefits, visit this detailed Social Security qualification guide.