What are the requirements to receive a pension in the USA?

The Social Security Administration, which is responsible for paying out pension benefits, said that those who do not meet certain key requirements will not be able to receive a pension. What are the minimum requirements for receiving a pension in the United States, the publication explains Union Rayo.

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The Social Security Administration (SSA), which is responsible for pension payments, has made it clear that those who do not meet key requirements will not be able to receive pension payments. And, of course, this has caused anxiety among those planning to retire soon.

So what are the minimum requirements to retire and receive benefits?

Minimum age

The age requirement is the basic requirement for starting to receive Social Security benefits. In the United States, Full Retirement Age is 67 for most workers (those born in 1960 or later). However, there is a minimum age at which you can stop working and start receiving SSA benefits: when you turn 62, you can apply for a pension.

What are "work credits"?

These are like the “coins” of the Social Security system. Over the course of your working life, the system awards credits based on the earnings you’ve earned (and paid taxes on and filed income tax returns on). These credits accumulate on your work record. You can earn four credits a year, provided you exceed a certain income threshold (in 4, you’ll need to earn $2025 per credit, meaning you’d need to earn $1810 a year to qualify for the maximum number of credits).

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How many loans do you need to retire

To retire and receive Social Security benefits, you need at least 40 credits, which is equivalent to 10 years of earning enough money to work. But be careful: These years do not have to be consecutive - the main thing is that you have reached the required number of credits. And keep in mind: if these criteria are not met, access to the pension will be denied.

What happens if you apply for early retirement

As we mentioned earlier, the minimum age to retire is 62. As tempting as it may be, if you retire before your full retirement age (FRA), your monthly benefits will be reduced by up to 30%. However, if you delay retirement until age 70 (for those workers who can afford it), your benefits will increase by 8% for each year you delay, up to the maximum age of 70.

Is it possible to accumulate more credits than necessary?

Yes, and this is quite common, but here's the bad news: accumulating more than 40 credits will not increase the amount of monthly payments you'll receive. So if you've exceeded that figure, your payments won't increase — at least for your retirement income. But for other types of benefits, yes, you may need to.

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Why are such measures being taken now?

Mainly for two reasons. The first is that life expectancy has increased in recent years, and as a result, the SSA cannot cover all the benefits for people leaving the labor force. So limiting access to benefits helps prevent the collapse of the system and protects it while other solutions are developed.

If you're already thinking about your retirement, good luck! Check how many credits you've accumulated and figure out when it's best to apply for benefits.

Welcome to the golden age!

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