In order to receive Social Security benefits, workers must meet earnings benchmarks during their career and pay appropriate payroll taxes to the Social Security Administration (SSA). Except for the self-employed, employees do not pay payroll taxes directly. Instead, the employer withholds and pays an amount based on each employee’s pay level and credits the amount to the employee’s account in the SSA. To qualify for Social Security retirement benefits, workers must earn 40 or more credits; since 1978, workers can earn up to four credits per year. So someone might work for ten years with the highest credits, or work longer but take fewer quality credits each year. The amount required to earn credits may change each year: In 2025, earning $1,810 is equivalent to one credit hour.
However, the size of one’s check is not based on the number of credits earned. As the SSA describes it, the agency calculates a person’s income over a 35-year period. The SSA then adjusts these earnings based on typical wage levels during that person’s employment to determine the worker’s index earnings. After SSA collects this information, the agency will focus on the years with the highest index earnings to calculate averages and benefit amounts. Therefore, higher earners will receive larger retirement checks from Social Security than lower earners. The SSA does not directly label anyone as a low-income retiree. However, if this is defined as receiving less than average Social Security income, then the SSA lists the average monthly benefit for retired workers as $2,008.31 as of August 2025.
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In 2024, the Center on Budget and Policy Priorities defined low earners as those earning 45% less than a typical wage, according to a GOBankingRates report. Under this definition, the average annual Social Security benefit for a low-income earner retiring at age 65 is $14,824. Broken down, the monthly cost is $1,235. In effect since 1972, very low-income workers may benefit from a program that provides special minimum benefits based on years of service rather than earnings, SmartAsset reports. To qualify, low-income workers need to work 11 or more years and pay an unspecified “substantial amount” into the Social Security trust fund. Based on 2025 data, someone with 11 years of experience would receive $52.10 per month. To receive the full special minimum benefit, someone must have worked for 30 years or more. Benefits for 2025 will be $1,093.10.
If someone retires before full retirement age (currently 66 to 67, depending on their year of birth), they can still receive a certain amount of employment wages, although there may be negative tax consequences. In 2026, the Social Security income limit will increase to $24,480. (For low-income earners who may not earn this amount, this won’t have much of an impact on income taxes.) Generally speaking, if someone doesn’t earn the current standard deduction amount, they may not even need to file a tax return. For a single taxpayer, the standard deduction in 2026 is $16,100.
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