The value of one work credit will increase from $1,510 in 2022 to $1,640 in 2023, according to the Social Security Administration announcement of upcoming adjustments.
SSA defines work credits as building blocks used to determine whether or not an individual has worked long enough to be eligible for Social Security benefits.
Social Security Work Credit
If you stop working before you’ve accrued enough credits to qualify for benefits, the credits you have already earned will still be there. This means that you can increase your eligibility by working again and adding to the credits you already have.
Your yearly earnings will determine your credit amount. Every year, you can earn up to four credits by working and paying your Social Security taxes.
In 2023, you’ll need to make $1,640 in order to qualify for one Social Security or Medicare credit and $6,560 in order to qualify for the maximum of four credits. No matter how much you make in a given year, you cannot acquire more than four credits.
One needs to have at least 40 credits in order to be eligible for Social Security benefits. But the rewards you obtain have nothing to do with how many credits you have earned.
Once you begin receiving Social Security benefits, your monthly payment amount will be based on your average earnings during your working years.
Read more: SSA, USDA will soon allow SSI beneficiaries to apply for SNAP benefits
Cost-Of-Living Adjustment For 2023
Those who have not yet created a My Social Security account online can do so by November 15 in order to find out how much their benefits will rise in 2023.
All the information you need to know about your updated benefit amount for 2023 is available in a document that can be viewed by logging into your My Social Security account and checking the message center.
You should be able to see your new monthly benefit amount, after any applicable deductions, and the date you should expect to receive your first payment with the cost of living adjustment (COLA) rise in the paperwork.
A cost-of-living adjustment (COLA) notice will be mailed to those who did not create a My Social Security account this month.
Please take note that the increase in your Social Security payment will not take effect until January 2023. On December 30th, if you get SSI, your payment will increase for the first time.
