It’s getting harder to qualify for Social Security. Here’s why.

One of the biggest misconceptions about Social Security is that everyone is entitled to it once they reach a certain age. In reality, Social Security is something you earn—specifically, by paying into the program through taxes on your wages.

To qualify for Social Security benefits in retirement, you must earn 40 work credits in your lifetime. And you can earn a maximum of four credits per year.

This year, $1,640 in earnings will qualify you for a single work credit. But next year, it will take $1,730 to qualify for a work credit. And that’s an important detail to keep in mind if you work a lot of part-time.

A person lifting a box in a warehouse.

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Make sure you earn enough

People who work full time generally don’t have to worry about not earning enough to earn four Social Security work credits in a year. The federal minimum wage is $7.25 an hour. That’s $290 a week for a 40-hour work week and $14,500 a year, assuming 50 weeks of work.

Meanwhile, it takes earnings of $6,920 to earn four Social Security work credits in 2024. So while minimum wage earners may have their share of financial struggles to contend with, those working full-time at that wage scale can still reach the maximum number of work credits.

But if you’re someone who works fairly part-time, it pays to pay attention to your earnings and hours in 2024 if your goal is to set yourself up with a regular Social Security benefit for retirement. The good news, however, is that any money you earn and pay taxes on counts for Social Security purposes. So if you decide to increase your income by participating in the gig economy, that income counts as long as it is reported and taxed.

There are other ways to become eligible for Social Security

Many people end up applying for Social Security benefits in retirement based on their own earnings history. But if you don’t end up accumulating enough work credits to qualify for benefits on your own, you may still be able to collect Social Security.

If you’re married to someone who’s eligible for Social Security, you can generally sign up for spousal benefits, which give you 50% of what your spouse collects each month. If you are divorced, you may also be eligible for spousal benefits from Social Security based on your ex-spouse’s record.

Stay informed about changes

There are a number of Social Security rules that will change in 2024, including the amount of earnings needed to qualify for a Work Credit. It pays to read up on changes to the program, even if you don’t collect benefits. You may be affected by updates even if you are many years away from reaching retirement age.

For example, next year’s Social Security wage cap increases, so higher earners will be forced to pay taxes on more of their income. If you are someone who is worried that you are unlikely to earn the $6,920 needed to receive four work credits, then this is not a change that will affect you. But it is still good to be informed.

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