Benefits will go up by about 2.5% because of the 2025 COLA increase. This means that people who get Social Security will get an extra $50 a month on average.
The bad news for workers is that they will have to make more money to get one work credit per term. In other words, the cost-of-living adjustment will help retirees, but it will hurt workers who make the least.
Remember that you have to have worked for at least 10 years before you can get Social Security retirement benefits. You can only get 40 work credits in ten years. Don’t forget that you can only get 4 work credits per year.
Earnings a worker needs to get 1 Social Security credit in 2025 after COLA
In the 2025 COLA Fact Sheet, the Administration talks about Social Security or work credits as the quarter of coverage. This notice from SSA confirmed that a worker will need to make $1,810 in 2025, up from $1,730, in order to get a single work credit.
This number has gone up a lot in the last few years because of the big increases in the COLA. Check out how much it can change in less than 10 years, even if you don’t think the rise is that big. This means that you will need $7,240 instead of $6,290 in 2025, which is $950 more in earnings after COLA.
Year and earnings you needed to get 1 work credit
- 2018: $1,320
- 2019: $1,360
- 2020: $1,410
- 2021: $1,470
- 2022: $1,510
- 2023: $1,640
- 2024: $1,730
- 2025: $1,810
Social Security credits evolution after COLA increases
For your information, 1978 is the first year that Social Security gives information about how much you need to earn to get one quarter of coverage. It cost $250 back then.
In 1988, ten years later, it went up to $470. It’s almost twice as much now, as you can see. If you worked for 700 dollars, you could get one work credit in 1998.
Compare that to the initial $250, and the amount reached an amazing $1,050 in 2008. It has been steadily going up, and in 2018 it reached $1,320.
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