The Social Security Administration keeps updating payments and work credits every year. Retirement is something you should plan as soon as you start working in the United States.
Money from Social Security retirement benefits will be essential. Especially if you have not been able to save enough or you neglected investments and saving accounts like 401(k).
To get retirement benefits you must have worked for at least ten years in jobs covered by Social Security. Some people still believe mistakenly that everyone can get Social Security benefits.
HOW MANY WORK CREDITS DO I NEED FOR RETIREMENT?
If you would like to enjoy Social Security as a retiree, you must have earned at least 40 work credits. Do not forget that you can file at the age of 62, but is it advisable?
Early filing is possible at 62, but it means getting 30% less per month. So, if you are on a low budget, you’d better wait until you reach Full Retirement Age. For your information, the Full Retirement Age is 67 if born after 1960.
If you have reached the age to retire and you have not earned forty work credits, you will not qualify for Social Security retirement benefits. Then, you will have to look for alternatives.
On many occasions, if you have not earned enough work credits and your income is low, you may be eligible for Supplemental Security Income. Some may also get SNAP, the former Food Stamps program.
WORK CREDITS AND NECESSARY EARNINGS IN 2024
If you would like to get retirement benefits, make sure you pay taxes to Social Security as you work. Some employees may make mistakes when paying taxes, so check they pay for the job you did.
It is of vital importance to check your annual Statement and report any mistakes to Social Security. Bear in mind that you can only get up to 4 work credits per year. To get a single credit you need $1,730 of earnings in 2024.
Therefore, if you do not earn $6,920 in 2024, you will not get 4 credits. After the COLA increase, you will need more earnings to get one credit. The previous quarter of coverage amount was $1,640.
As you can see, you will need $90 more than in 2023 to get a single work credit. To get 4 work credits in 2024 you will need $360 extra. Hence, make sure you look for well-paid jobs to contribute more to Social Security and get a larger retirement benefit.