It Just Got Harder to Qualify for Social Security. Here’s Why
Key Points
To qualify for Social Security benefits, you need 40 work credits in your lifetime.
The value of a work credit is rising in 2027, making it harder for part-timers to get four credits in the new year.
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If you don't know much about Social Security, you might assume that once you get to a certain age, those benefits will start coming in automatically. In reality, Social Security payments don't just begin at a given point in time.
You need to actively file for benefits for those monthly checks to start hitting your bank account. And you also need to qualify for Social Security to get those retirement benefits.
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To become eligible for Social Security, you must accumulate 40 work credits in your lifetime, at a maximum of four credits per year. Work credits are worth a certain amount of wages, and that amount tends to change annually.
A big rule change will make it harder to qualify for Social Security in 2027. If you're a part-time worker or near-retiree, it's important to understand what's in store.
Work credits for Social Security are getting harder to earn
Earlier this month, the Social Security Administration announced some big program changes, including a 3.6% cost-of-living adjustment. A new work credit value was also announced.
Currently, it takes $1,890 in wages to earn a single work credit. In 2027, it will take $1,970 in wages to earn a single work credit. This means that if you work very part-time, you may need to increase your hours or income if you're hoping to snag the maximum four credits you can get.
If you work full-time, though, this change may not affect you. Even at minimum wage, full-time workers shouldn't have trouble earning four Social Security credits. It's part-timers and gig workers who may have to be more vigilant.
If you're nearing retirement and don't have 40 Social Security work credits under your belt, it's also crucial to be mindful of your 2027 earnings. It may be that you've scaled down to part-time or occasional employment. But if you're hoping to claim benefits soon, you'll need to make sure you have enough work credits to qualify.
Don't get thrown for a loop
Despite what you may have been led to believe, qualifying for Social Security in retirement isn't automatic. Those benefits have to be earned. And unless you're eligible for spousal benefits, paying into the program is how you get them.
The fact that the value of Social Security work credits is rising in 2027 may or may not be a problem for you based on your hours and wages. But it's important to be aware of this change so you know what you're dealing with.
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