It is becoming increasingly difficult to qualify for Social Security benefits in retirement. Here's why

One of the biggest myths about Social Security is that everyone is entitled to a monthly benefit once they reach a certain age. But that's not how the program works.

In general, the way to receive Social Security benefits in retirement is to earn them by working and paying into the program. There may be exceptions for people who are not employed but are entitled to spousal benefits or survivor benefits. However, if you want to secure these benefits for your retirement, it is important to ensure that you have accumulated enough working credits over the course of your life.

Specifically, social security requires a total of 40 work points to be eligible for benefits. The tricky part, however, is that you are only allowed to earn up to four work points per year. This means that you generally have to do a certain job for at least 10 years to be eligible for social security.

Meanwhile, the value of a work credit can change from year to year – and that's exactly what's happening in 2025.

On October 10, the Social Security Administration announced a series of major changes to the program that will take effect in 2025. One key change is a 2.5% cost of living adjustment. Another reason is a higher wage cap for Social Security tax purposes – $176,100, up from $168,600 in 2024.

Another big change in 2025 is the value of a single work credit. Currently, earnings of $1,730 are required to receive a work credit. Next year it will be $1,810. This is something to keep in mind if you work part-time but want to ensure you receive Social Security benefits later.

However, you should know that this change shouldn't really affect you if you work full-time, even if you only earn minimum wage. If that's the case, and you earn the minimum wage for 40 hours per week over 50 workweeks, that's more than enough income to secure your four work credits for 2025.

Although Social Security has been around for a long time, the program typically changes every year. These are worth keeping an eye on, regardless of your age.

You might assume that if you're far from retired, you don't need to bother learning about Social Security. However, if you don't understand what it takes to receive benefits, you could find yourself missing out on this important source of income once you're unable to work at all.

Of course, if you are someone who works so much part-time that you are unable to accumulate 40 work credits over the course of your life, you may be able to draw on someone else's income, such as your spouse's. You may be eligible for some type of Social Security benefit later her Earnings record. But it's best to know the rules so you know what to expect as you get older.

The story continues