The $1,890 Social Security Work Credit Rule Gets an Overhaul. Here’s Who It Hits
A rule change coming in 2027 could leave part-time workers short of the Social Security credits they need to retire, and most people have no idea it's happening.
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One of the biggest misunderstandings about Social Security is that all workers are entitled to benefits once they reach retirement age. In reality, there are requirements to qualify for Social Security.
To receive Social Security in retirement, you need to accumulate 40 work credits in your lifetime, which you get by earning money and paying taxes on your wages. The value of a work credit can change from year to year, and the maximum number of work credits you can collect in a single calendar year is four.
To be clear, you don’t have to earn four credits every year to get Social Security. You could earn three credits some years and two credits other years, or another combination. As long as you have 40 credits in total by the time you’re ready to claim Social Security, those benefits should be yours to collect.
But the value of a Social Security work credit is set to change in 2027. And if you’re trying to get those credits and only work part-time, it’s a change you’ll need to pay close attention to.
Why the value of a Social Security work credit changes over time
Social Security gets the bulk of its funding from payroll taxes. The reason the value of Social Security work credits changes is that federal law ties it directly to national average wages.
Each year, the Social Security Administration (SSA) uses the National Average Wage Index to determine the value of a single work credit. As wages grow, the value of a work credit tends to increase.
Work credits also don’t determine what Social Security benefit you get in retirement. That number is calculated based on your 35 highest-paid years of earnings. Rather, work credits simply allow you to become eligible for Social Security.
What to look out for in 2027
This year, the value of a Social Security work credit is $1,890. For context, the value of a single credit in 2025 was $1,810.
The value of a work credit is expected to increase in 2027, but as of this writing, we do not know the exact number. The SSA is expected to share that information in mid-October once it’s able to reveal an official cost-of-living adjustment for the new year.
But you should most certainly expect the value of a single work credit to increase. This means that if you work part-time and only earn $7,560 this year, which is the equivalent of four credits at the current rate, you may need to work more to get four credits in 2027.
Qualifying for Social Security without enough work credits
If you don’t manage to accumulate 40 Social Security work credits in your lifetime, that doesn’t mean retirement benefits are off the table. You may still be eligible for Social Security if you qualify for spousal benefits based on a current or former spouse’s earnings record.
But if you aren’t married and never were, you’ll need those work credits to get Social Security in retirement. So keep an eye out for the aforementioned change if you’re nearing the end of your career and want to make sure you end up with all of the work credits you need.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
