Social Security credits and retirement benefits go together. The first thing you need to know is that paying taxes to Social Security will grant you work credits. So, as you work you can get credits if you pay to SS. Once you have got the necessary number of credits over the years, you may be eligible for Social Security benefits like retirement. It is not rocket science as you can see.
Your earnings are the key to getting more or fewer credits. As you may have already guessed, the higher your earnings are, the higher the number of Social Security credits for retirement will be. Some of you may already be thinking of ways to get as many credits as soon as possible. In this way, you could qualify for a benefit if it were necessary for the future.
Do not rush, because there is a limit to the number of Social Security retirement credits you can earn. It is true that they take into account your earnings as well as your work history. Despite the fact that the number of credits may vary from one worker to another, the maximum number you could get is four per year. Though, it is obviously better to make more money, not only for getting more credits but also for your financial situation.
Could your family claim survivors benefits when you die if you have enough Social Security credits?
Apart from getting retirement benefits, your family could also benefit from your Social Security credits. They could be entitled to survivors benefits if you pass away. Besides, if you have a disability, you may also need those credits. Bear in mind that the number of credits you earn depends on a certain amount of money somehow. You must earn $1,510 to get one single credit.
This amount will be updated soon, it will not vary much though. Just like inflation and COLA go up this year, so will the amount of earnings. Do not worry if you have different jobs throughout the year. Social Security keeps a record of all your credits for retirement or any other benefits. Not having a source of income for a while does not affect it either.
Self-employed people may wonder if they are in the same situation or not. It is true that they have many different taxes or rules compared to other workers, but for these retirement credits, nothing changes. If you have earnings that are below $400 and you are self-employed, there are some special rules SSA has that you may wish to have a look at.