The Social Security Administration is set to increase the threshold for claiming Social Security credits in 2025. Currently, workers must earn above a certain amount each year to claim credits, which are used to determine retirement benefits. Starting in 2025, the value of each credit will increase to $1,810 or $7,240, affecting low-income individuals and part-time workers who may struggle to earn enough for four credits.
The changes aim to reflect the rising national average wage index. With the median weekly earnings for private sector workers at $1,221.42, some workers may not be able to earn enough for a full year’s worth of credits. This increase will have significant implications for those who rely on Social Security credits for retirement and disability benefits.
The importance of earning Social Security credits cannot be overstated. They are used to determine both retirement payments and eligibility for Social Security Disability Insurance (SSDI). Without sufficient credits, individuals may struggle to access these vital benefits.
Source: https://en.as.com/latest_news/changes-ahead-for-social-security-credit-heres-the-new-threshold-set-for-2025-n-3