If you do not earn the required 40 credits, you will not be eligible for Social Security retirement benefits. However, there are other options: Supplemental Security Income (SSI): For those who are 65 or older, blind, or disabled and have limited income and resources, SSI may provide financial assistance.
You earn credits by working and paying Social Security taxes, regardless of whether you're self-employed or employed full time or part time. You can earn up to four credits each year, essentially one per quarter. Each credit is based on a monetary amount of earnings; for 2024, every $1,730 earned equals a credit.
Those who are new to working for themselves should know that their past employer paid half their Social Security contributions and they paid the other half. You're both the employer and employee now that you're self-employed, so you're responsible for making the entire Social Security contribution amount yourself.
Earn 40 credits to become fully insured
In 2024, the amount needed to earn one credit is $1,730. You can work all year to earn four credits ($6,920), or you can earn enough for all four in a much shorter length of time. If you earn four credits a year, then you will earn 40 credits after 10 years of work.
Exactly how much in earnings do you need to get a $3,000 benefit? Well, you just need to have averaged about 70% of the taxable maximum. In our example case, that means that your earnings in 1983 were about $22,000 and increased every year to where they ended at about $100,000 at age 62.
If you've worked and paid Social Security taxes for 10 years or more, you'll get a monthly benefit based on that work.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Investing all or a portion of your Social Security check in dividend-paying stocks or mutual funds can be a great way to earn a bit of extra money. “You should seek out companies with a history of consistent dividends,” said Joel V. Russo, LUTCF, retirement advisor, founder and principal at NJ Retirement Planning, LLC.
But even if you never worked and therefore don't have an earnings record, you're not necessarily out of luck. If you're married (or were married) to someone who's entitled to Social Security, you can collect spousal benefits equal to 50% of your husband or wife's benefits at full retirement age.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
If you've worked and paid taxes into the Social Security system for at least 10 years and have earned a minimum of 40 work credits, you can collect your own benefits as early as age 62.
Just because you don't bring home a paycheck doesn't mean you're not working. A stay-at-home parent can get a Social Security check just like any other worker.
Definition. Lawful permanent residents who have worked or can be credited with 40 qualifying calendar work quarters under the Social Security Act are potentially eligible to receive public benefits.
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
Generally, the maximum Federal SSI benefit amount changes yearly. SSI benefits increased in 2024 because there was an increase in the Consumer Price Index from the third quarter of 2022 to the third quarter of 2023. Effective January 1, 2024 the Federal benefit rate is $943 for an individual and $1,415 for a couple.
Each survivor benefit can be up to 100% of your benefit. The amount may be reduced if the women start benefits before their own full retirement age, but they don't have to share — the amount isn't reduced because you've had more than one spouse.
If you've reached your full retirement age, you can receive 100% of your spouse's disability benefits. If you're between 50 and 59 and you also have a disability, you can receive 71.5% percent of your spouse's benefits.
The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit.
Social Security's special minimum benefit pays at least $49.40 per month in 2023 and $50.90 in 2024. Social Security's special minimum benefit tops out at $1,033.50 per month in 2023 and $1,066.50 in 2024. You'll receive 100% of the benefit if you file at full retirement age or later.