The Social Security Administration (SSA) recently updated the annual earnings requirement for 2025, setting the amount at $7,240 to earn the maximum of four credits for the year. These credits are essential for qualifying for Social Security benefits, including retirement, disability, and survivors’ benefits. Here’s a breakdown of how this works and why it’s important.
How Social Security Credits Work
Social Security benefits are tied to the number of credits you earn throughout your working life. In 2025, you will earn one credit for every $1,810 of covered earnings. This means that by making $7,240 or more during the year, you can earn the maximum of four credits.
However, don’t worry about exceeding that amount to gain additional credits — four credits are the maximum you can earn each year. What truly matters is accumulating enough credits over time to qualify for benefits.
Why Are These Credits So Important?
- Retirement Benefits: To qualify for Social Security retirement benefits, you typically need 40 credits, which equals about 10 years of work.
- Disability Benefits: If you become disabled, the number of credits you need will depend on your age. For example, if you’re 31 or older, you’ll generally need 20 credits earned in the last 10 years.
- Survivors’ Benefits: Family members may be eligible for benefits based on your work history. The number of credits required will vary, but younger workers who pass away may require fewer credits for their families to qualify.
How to Ensure You’re on Track
Make sure you’re tracking your earnings and credits by creating a “my Social Security” account on the SSA’s official website. This allows you to monitor your eligibility and ensure you’re meeting the requirements.
Key Takeaways
- Earning $7,240 in 2025: This is the threshold to gain four Social Security credits for the year.
- Credits Are Capped at Four Per Year: Earning more than $7,240 won’t give you extra credits, but it can contribute to higher future benefits.
- Plan Ahead: To qualify for retirement, you’ll need 40 credits (10 years of work). For disability and survivors’ benefits, the required credits depend on your situation.
Staying informed about these requirements can help you secure the benefits you’ll need for a comfortable future. With strategic planning, you can ensure you’re on the right path to receiving the Social Security benefits you’ve earned.
