The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Financial.Velociraptor on July 03, 2018, 05:22:10 PM

Title: How much do you have earn in a qtr to earn a SS credit?
Post by: Financial.Velociraptor on July 03, 2018, 05:22:10 PM
I've picked up a small gig in ER as a municipal water board director.  I get 150 a month for attending the meetings.  Will this improve my eventual SS payments?  I'm currently projected to pull down 641/mo from SS.
Title: Re: How much do you have earn in a qtr to earn a SS credit?
Post by: Financial.Velociraptor on July 03, 2018, 05:29:46 PM
Found it: To qualify for benefits, you earn "credits" through your work - up to four each year. This year, for example, you earn one credit for each $1,320 of wages or self-employment income. When you've earned $5,280, you've earned your four credits for the year. Most people need 40 credits, earned over their working lifetime, to receive retirement benefits. For disability and survivors benefits, young people need fewer credits to be eligible.

So I'll pick up 1 qtr per year. 
Title: Re: How much do you have earn in a qtr to earn a SS credit?
Post by: kpd905 on July 03, 2018, 05:37:19 PM
Have you not already earned all 40 credits?
Title: Re: How much do you have earn in a qtr to earn a SS credit?
Post by: Financial.Velociraptor on July 03, 2018, 06:00:02 PM
Have you not already earned all 40 credits?

I have. I'm just curious how much I need to make to move the needle post eligibility.
Title: Re: How much do you have earn in a qtr to earn a SS credit?
Post by: kpd905 on July 03, 2018, 06:11:18 PM
After you have hit the minimum number of credits, I think all taxable income will increase your benefit amount, assuming it is taking the place of lower earning years.  I don't believe it has to be over the minimum for a SS credit.How much it increases it depends on where you are in regards to the bend points.
Title: Re: How much do you have earn in a qtr to earn a SS credit?
Post by: Hargrove on July 03, 2018, 07:13:36 PM
Credits are irrelevant to eligibility amount (once it's not zero).

SS calculators take your highest-paid 35 years of work. If you worked fewer than 35 years, SS will be plugging in 0 for each slot where you don't have any more years of work history to enter a number.

Your job may eventually change your monthly SS by a dollar, but only if you have under 35 years of work history. Really, moving that needle is not worth doing for its own sake.

https://www.ssa.gov/planners/retire/AnypiaApplet.html