What Is a Quarter of Coverage for Social Security?
Understand Social Security's "quarters of coverage" and their crucial role in determining your benefit eligibility.
Social Security is a federal program that provides financial protection to millions of Americans. This program offers various benefits, including retirement, disability, and survivor benefits, designed to support individuals and families during different life stages. Eligibility for these benefits is determined by a system of earned “credits,” officially known as quarters of coverage. Understanding what these quarters represent and how they are accumulated is important for anyone planning their financial future.
Understanding Quarters of Coverage
A quarter of coverage (QOC) is the fundamental unit Social Security uses to determine a worker’s eligibility for benefits. These quarters are not tied to specific calendar periods, such as January through March or April through June. Instead, they are earned through qualifying earnings from work. Without enough accumulated quarters, individuals cannot receive Social Security payments, regardless of their age or need.
Earning Quarters of Coverage
The mechanism for earning quarters of coverage is directly linked to an individual’s annual earnings. A specific amount of earnings is required to earn one QOC, and this amount is subject to change each year. For 2025, an individual receives one credit for each $1,810 of earnings. This amount is adjusted annually based on changes in the national average wage index, reflecting economic conditions.
Regardless of how high an individual’s earnings may be, there is a limit to how many quarters of coverage can be earned in a single year. An individual can earn a maximum of four QOCs in any given year. This means that even if someone earns the total amount needed for all four quarters early in the year, they cannot earn additional quarters for that year. For instance, to earn all four credits in 2025, a person would need to earn $7,240, which is four times the $1,810 threshold per credit. Once this annual maximum of four quarters is reached, any further earnings in that year do not result in additional credits.
Quarters for Social Security Benefits
The accumulation of quarters of coverage is directly tied to an individual’s eligibility for various Social Security benefits. For retirement benefits, the standard requirement is to be “fully insured,” which generally means accumulating 40 quarters of coverage. This is equivalent to 10 years of work, assuming an individual earns the maximum four quarters each year. These 40 credits remain on a person’s record even if they change jobs or have periods of no earnings.
The number of required quarters can differ for other types of benefits, such as disability and survivor benefits. For disability benefits, the number of credits needed depends on the individual’s age at the time of disability. For example, younger individuals generally require fewer credits; someone becoming disabled before age 24 might need only six credits (1.5 years of work) within the three years before disability. Similarly, survivor benefits have varying QOC requirements, often fewer than 40, especially for younger workers who pass away. Being “currently insured” or “disability insured” involves specific quarter requirements based on age and when the event, such as disability or death, occurred, ensuring that coverage is available for those who have contributed a sufficient amount during their working years.