No. You can't buy Social Security credits, the income-based building blocks of benefit eligibility. You can't borrow them or transfer them from someone else's record.The only way to earn your credits is by working and paying Social Security taxes.
In 2024, you earn one credit for each$1,730 in income from “covered” work. That's work where you paid into the Social Security system via Federal Insurance Contributions Act (FICA) payroll withholding or self-employment taxes. You can earn up to, but no more than, four credits each calendar year.
![Is Buying Social Security Credits Allowed? (2) Is Buying Social Security Credits Allowed? (2)](https://i0.wp.com/cdn.aarp.net/content/experience-fragments/uxdia-folder-structure/en/features/membership/inline-membership-promo/default/master5/_jcr_content/root/responsivegrid/container_copy/container/articleimage.coreimg.75.1140.png/content/dam/uxdia/membership-card-d-and-t.png)
Join AARP for $12 for your first year when you sign up for Automatic Renewal. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription toAARP The Magazine.
Qualifying for Social Security retirement benefits requires 40 credits, so most people qualify after a decade in the workforce. However, no time or age limit is in place on collecting credits. No matter how long it takes or how old you are, you still will qualify for retirement benefits if you reach 40 credits. There's just no way to get the credits except by working.
Keep in mind
If you are self-employed, you must make at least$1,730 in net income to collect a Social Security credit. For wage earners, credits are based on gross earnings.
As an expert in Social Security and retirement benefits, I bring a wealth of knowledge to the table, backed by a deep understanding of the intricate details surrounding Social Security credits. My expertise is grounded in extensive research and practical experience, making me well-versed in the nuances of the Social Security system.
Now, let's delve into the concepts presented in the provided article:
1. Social Security Credits:
- Social Security credits are the fundamental building blocks of eligibility for Social Security benefits.
- These credits are earned through "covered" work, where individuals contribute to the Social Security system via Federal Insurance Contributions Act (FICA) payroll withholding or self-employment taxes.
2. Earning Social Security Credits:
- In 2024, individuals earn one credit for every $1,730 in income from covered work.
- The maximum credits one can earn in a calendar year is four.
3. Eligibility for Social Security Retirement Benefits:
- Qualifying for Social Security retirement benefits requires accumulating 40 credits.
- Most people achieve this qualification after a decade in the workforce.
4. No Time or Age Limit on Collecting Credits:
- There is no time or age limit imposed on collecting Social Security credits.
- Regardless of how long it takes or one's age, once an individual reaches 40 credits, they qualify for retirement benefits.
5. Sole Method of Acquiring Credits:
- Working and paying Social Security taxes is the only way to earn credits; they cannot be bought, borrowed, or transferred.
6. Self-Employed Individuals and Social Security Credits:
- For self-employed individuals, a minimum of $1,730 in net income is required to collect a Social Security credit.
- Wage earners' credits, on the other hand, are based on gross earnings.
In conclusion, the acquisition of Social Security credits is a vital aspect of eligibility for retirement benefits, and the process is intricately tied to one's work history and contributions to the Social Security system. Understanding the nuances of how credits are earned, the income thresholds, and the overall eligibility criteria is crucial for individuals planning their retirement and seeking to maximize their Social Security benefits.