What is a consequence of not having sufficient work credits for Social Security benefits?

Not having sufficient work credits for Social Security benefits results in ineligibility for those benefits. Social Security operates on a system that requires individuals to accumulate a certain number of work credits, which are earned based on your work history and the amount of money you have made.

To be eligible for retirement benefits, for instance, a worker typically needs 40 credits, which generally equates to about 10 years of work. If an individual has not worked enough to earn the required number of credits, they simply do not qualify for benefits, meaning they won't receive retirement income, disability payments, or survivor benefits if something were to happen to them. This underlines the importance of consistent work history in order to secure Social Security protection later in life.

The other choices relate to benefits that do not apply in this context. Reduced benefits imply that one is eligible but receiving less than the full amount, which is not the case when someone lacks sufficient credits, as they aren’t eligible at all. Higher tax rates and extra withholding requirements pertain to taxation aspects rather than eligibility for Social Security benefits.