Upcoming Social Security Credit Changes: Here’s the new threshold set for 2025

To claim retirement benefits in the United States, you must earn 40 ‘credits’ corresponding to ten years of continuous work. The maximum number of points earned annually is fourone for each quarter. However, when you reach earnings that exceed the value of four credits combined, which in 2024 was $6,920 ($1,730 per credit), you will automatically receive four credits for that year.

Starting in 2025, the value of each credit will increase to $1,810 or $7,240 for all four. These amounts change annually based on the change in national average wage index. The formula to calculate the increase looks like this:

This increase will affect low-income and part-time workers, as it may prevent them from earning the full four credits in the coming year. According to Bureau of Labor Statisticsaverage weekly earnings for private sector workers in November was $1,221.42. This means that if they contribute to social security, they earn enough for a credit after just two weeks of work.

For more information, the Social Security Administration hair a pamphlet describes how credits are earned and how they are applied to each aspect of Social Security.

Why Social Security Credits Are So Important

Several factors affect how much you can claim in pension payments. These are your earningsyour highest salary every year for 35 years, and the age at which you retire.

These credits are also used to claim Social Security Disability Insurance (SSDI). If you don’t have enough credits, you prevent yourself from claiming disability benefitscontributes to more than 20% of disabled Americans living in poverty.

When a person who has worked and paid Social Security taxes dies, certain family members may be eligible for survivor benefits. Up to 10 years of work is required to qualify for benefitsdepending 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 in the three years before his or her death.

Put your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverageat your fingertips – anytime and anywhere.