What are work credits?

Question

Justin Parker · Accepted Answer

Work credits are items that are used by the Social Security Administration (SSA). Work credits represent a measure that the SSA uses to determine specific eligibility for Social Security benefits. In simple terms, when an individual pays their taxes, they earn work credits based on their earnings.

However, the specific amount of earnings required to obtain one work credit changes yearly. And the number of work credits an individual needs to qualify for Social Security benefits depends on the specific type of benefit that individual is seeking.

For example, to qualify for retirement benefits a person needs to acquire at least 40 work credits over their lifetime, and they also must work for a minimum of 10 years. Work credits are important because they represent an individual's eligibility for certain SS benefits.

If you would like further information you can check your Social Security Statement or reach out to the SSA directly.