Why It Might Be Getting Harder To Qualifty for Social Security Benefits

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For those nearing retirement age or already receiving Social Security benefits, it’s important to stay up to date on upcoming changes to how benefits are paid out. For many Americans, Social Security is an essential part of their income, so any updates to the program can affect their quality of life.

Though much has been talked about when it comes to changes in 2025, many proposals have not been made concrete or are slated to affect both the payments beneficiaries receive and the qualifications they’ll need to access those benefits, potentially later in the year. However, there are a few ways for which Social Security has become more difficult to qualify. 

Social Security Changes in 2025: What You Need To Know

One of the biggest changes in 2025 is an adjustment to the earnings threshold you need to reach to earn Social Security credits. The system currently requires American workers to earn $1,810 for each work credit. While workers can accrue up to four credits each year, this incremental change reflects adjustments related to inflation and average wage growth.

The other big changes so far this year are that the cost-of-living adjustment (COLA) is smaller at 2.5% and the full retirement age has been extended from age 65 to 66 or 67. 

How Much Harder Is It To Qualify for Social Security Benefits?

Yes, qualifying for your benefits has changed in 2025, especially when it comes to earning limits and benefit adjustments. Here are a few key takeaways:

• If you are younger than the full retirement age, the earnings threshold before benefits are reduced is increasing, as well as the amount of earnings needed to earn a Social Security credit. 
• Social Security will now withhold $1 in benefits for every $2 in earnings above $23,400 in 2025.
• The earnings limit if you reach full retirement age in 2025 is $62,160, which is up from $59,520 last year.
• As previously reported, you’ll earn one Social Security credit for every $1,810 in covered earnings, with a maximum of four credits per year.
• How earned credits are calculated isn’t the only change coming in 2025. The Social Security cost-of-living adjustment will be slightly different, too. Those who receive Social Security benefits will see only a 2.5% increase in the amount paid out each month, which is a smaller bump than in previous years.

Should You Be Worried?

If you’re a full-time worker, you don’t need to be concerned about these changes. If you’re working 40 hours per week over a standard 50-week work year, even at minimum wage, you’re sure to earn the maximum four credits.

However, it might be a different story if you’re a part-time worker, as you might struggle to accumulate enough credits. You’ll want to carefully review these changes and predict the amount you’re likely to earn throughout 2025 to determine whether the changes could affect you.

What These Changes Don’t Affect

Remember, while work credits are used to determine your eligibility for benefits, they don’t affect the actual amount you receive. Social Security credits establish only your eligibility for retirement, disability and survivors’ benefits and whether you qualify for Medicare; they have no role in calculating the amount of your payments.

Final Take To GO: Retirement Planning Considerations

The bottom line is that if you’re nearing retirement age, understanding the ins and outs of Social Security benefits is important. You want to make sure your earnings are enough to secure at least four credits each year for the 10 years before the date of your retirement. This is especially true if your income varies from month to month or if you’re working only part-time. 

If you don’t earn the minimum credits before you plan to retire, you may not be eligible for future benefits. You’ll also want to carefully consider your timing for claiming your Social Security benefits. Though you can access your benefits as early as age 62, waiting until the full retirement age, or even longer, can mean higher monthly payments, especially if you wait until age 70 to claim. 

Even if you’re someone who won’t have to worry about qualifying for Social Security, you may want to carefully consider your post-retirement income. It’s best to depend on Social Security as only one part of your overall retirement plan. Additional savings, investments and revenue streams from reliable sources can provide a much greater financial safety net.

Caitlyn Moorhead contributed to the reporting for this article.

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