Which of the following statements about Social Security credits is true?

The statement that credits are earned based on work and contributions to the program is true. Social Security credits are a measure of an individual's work history and contributions to Social Security through payroll taxes under the Federal Insurance Contributions Act (FICA).

To qualify for benefits, individuals must earn a certain number of credits, which are accumulated throughout their working life. As of 2023, individuals can earn a maximum of four credits per year, and the amount of earnings required to obtain one credit may change annually, reflecting wage growth. This system ensures that benefits correspond to the amount of work and contributions made to the Social Security system, highlighting the program's design to reward individuals for their workforce participation.

In contrast, other statements do not accurately represent how Social Security credits function. For example, while it's true that credits themselves do not directly affect the benefit amount, they are essential for eligibility to receive benefits. Age does not determine the credits earned; they are based on actual work contributions. Additionally, Social Security credits are not transferable between family members; each individual accumulates their own credits based on their own work history.