I am nearing retirement age, and hoping to collect Social Security once I reach full retirement age (FRA). I have worked for a few years recently, but never had a full-time job before that. I have never been disabled. How will I know whether I have earned enough income subject to Social Security tax to collect benefits when I retire?
In order to be eligible to receive Social Security benefits, you need to accumulate 40 work credits. According to the Social Security Administration, "In 2013, you receive one credit for each $1,160 of earnings, up to the maximum of four credits per year." Each year, the amount of earnings required for a credit is adjusted based on nationwide average earnings. An individual with 10 years of work, earning at least 4 quarters worth of the minimum income required per year, will earn 40 credits and be eligible for benefits.
While an individual cannot earn more credits above $4,640 in a year, the amount of benefits is based on full earn…