Anonymous asked in Business & FinanceInvesting · 3 weeks ago

Since 40 work credits is required for retirement any point of getting 80 work credits ?

I read online that more work credits does not increase the retirement amount.  Besides being able to save up, invest I see no point working 50 years. 

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3 Answers

  • Amy
    Lv 7
    3 weeks ago

    Earning more money than you did 30 years ago increases your retirement benefit.

    The benefit is not "the average of your earnings over your working years." It's the average over your 30 highest years of earnings. Quitting after just 10 years leaves a lot of 0's in that calculation.

    But of course the main reason to keep working is to earn money. Social Security is not enough money to live on.

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  • 3 weeks ago

    Work credits are only used to determine if you are even eligible for Social Security retirement benefits. If you do not have 40 credits, you are not eligible for retirement benefits.

    Assuming you have at least 40 credits the amount you receive per month in retirement benefits is based on how much you made subject to Social Security payments. 

    You can earn four credits per year so it is entirely possible to be eligible for retirement benefits if you only work ten years, but if you work twenty years instead of ten years (and get 80 credits instead of 40) your retirement benefits will probably be roughly twice as much as if you only worked ten years. The extra credits would not increase your benefits, but the extra income would.

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  • 3 weeks ago

    Umm, wouldn't you want to eat and live under a roof for the last 40 points?

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