If you are counting on Social Security for your retirement or disability benefits, the concept of Work Credits is central to determining how much you could receive. In 2025, those with lower earnings may receive up to $4,800 annually through direct deposit, provided they meet the required work and income criteria set by the Social Security Administration (SSA).
What Are Work Credits
Work Credits are a way for the SSA to measure how long you have worked and contributed to Social Security through payroll or self-employment taxes. These credits determine your eligibility for retirement benefits, disability assistance, and survivor benefits for your family.
Each year you work and pay Social Security taxes, you accumulate credits. The number you earn depends on your annual income.
Work Credits in 2025
For 2025, the SSA has set the value of one Work Credit at $1,810 in earnings. You can earn up to four credits per year. This means earning $7,240 or more in 2025 will give you the maximum four credits.
| Annual Income (2025) | Work Credits Earned |
|---|---|
| $1,810 | 1 Credit |
| $3,620 | 2 Credits |
| $5,430 | 3 Credits |
| $7,240 or more | 4 Credits |
These thresholds can change slightly each year due to inflation adjustments.
Credits Needed for Benefits
- Retirement Benefits: You need at least 40 credits, typically earned over 10 years of work. Benefits can start at age 62 but are higher if claimed at full retirement age (66 or 67).
- Disability Benefits:
- Under age 24: 6 credits in the past 3 years
- Age 24–31: Half the credits possible since age 21
- Age 31 or older: 20 credits in the past 10 years
- Survivor Benefits: Based on the worker’s credits; requirements decrease with age at death, with a maximum of 40 credits needed.
How Benefits Are Calculated
The SSA calculates benefits using your highest 35 years of earnings to determine your Primary Insurance Amount (PIA). Your annual benefit is based on this calculation.
| Average Monthly Income | Estimated Monthly Benefit | Estimated Annual Benefit |
|---|---|---|
| $1,500 | ~$1,200 | ~$14,400 |
| $900 | ~$720 | ~$8,640 |
| $400 | ~$320 | ~$4,800 |
For those earning at the lowest tier, direct deposits could total about $4,800 per year.
How to Check Your Eligibility
- Create a My Social Security Account on the SSA website to view your earnings record and credits.
- Check Your Earnings Statement to confirm your credits are accurately recorded.
- Use the Retirement Estimator to project potential benefits based on your current and future earnings.
Why It Matters
Work Credits are more than just a number; they represent your eligibility for a lifetime safety net. Knowing where you stand now ensures you can plan for retirement, disability protection, and financial security for your family.
FAQs
How much is one Work Credit in 2025?
$1,810 in earnings gives you one credit.
What is the maximum number of credits per year?
Four credits per year.
How many credits are needed for retirement benefits?
At least 40 credits, usually earned over 10 years.
How much could low earners get annually?
About $4,800 through direct deposit.
Where can I check my Work Credits?
On the SSA website via a My Social Security account.
