If you’re planning to retire in 2025, one of the first things you should understand is how to qualify for Social Security retirement benefits. Many people believe that these benefits are given automatically, but that’s not true. To receive Social Security, you must first earn enough work credits based on your income and the Social Security taxes you’ve paid.
Let’s take a closer look at how this system works and what you need to do to be eligible.
What Are Social Security Credits?
The Social Security Administration (SSA) uses a credit system to decide if you’re eligible for benefits. Every time you earn money and pay Social Security taxes (either through a job or self-employment), you earn work credits.
In 2025, you earn 1 credit for every $1,810 of earnings. You can earn a maximum of 4 credits per year, no matter how fast or slow you earn that money. So, to get all 4 credits in 2025, you must earn at least $7,240 in the year.
It doesn’t matter if you earn this amount over a few weeks or the whole year. What matters is the total amount earned and that it is subject to Social Security payroll tax.
How Many Credits Do You Need to Qualify?
To qualify for retirement benefits, you need 40 credits in total. That means you must work and earn enough for at least 10 years. These years don’t have to be back-to-back. As long as you reach 40 credits, even over a longer period, you become eligible.
This rule applies to both:
- Employees who work for companies
- Self-employed individuals who pay self-employment tax
Once you have 40 credits, you are considered “fully insured” by Social Security and can receive monthly retirement payments.
When Can You Start Claiming Benefits?
You can start receiving benefits as early as age 62, but there’s a catch. If you claim early, your monthly payment will be reduced permanently. The Full Retirement Age (FRA) for people born in 1960 or later is 67. If you wait until this age, you’ll receive your full benefit amount based on your earnings history.
If you delay claiming until age 70, your monthly payments will increase even more thanks to delayed retirement credits. This strategy can be helpful if you expect to live longer or want to maximize your monthly income.
Summary: Social Security Credits in 2025
Here’s what you need to remember:
- You earn 1 credit for every $1,810 of earnings in 2025
- You can earn up to 4 credits per year
- You need 40 credits to qualify for retirement benefits (usually takes 10 years)
- It doesn’t matter how fast or slow you earn the credits—just your income matters
- Claiming before age 67 reduces benefits; delaying until 70 increases them
Planning for retirement in 2025 means understanding how Social Security works. The key requirement is earning 40 work credits, which most people can achieve by working for at least 10 years and paying the correct taxes.
Whether you’re employed or self-employed, every year you contribute brings you closer to securing your retirement. While you can start collecting benefits at age 62, waiting until age 67 or even 70 can make a big difference in how much you receive each month. Understanding the rules now can help you make smarter decisions for a financially secure future.