Social Security Proposal Would Allow Millions to Earn More Money
Summary
A new proposal in Congress aims to let millions of older Americans earn more money from work without losing Social Security benefits. The bill would remove a rule that reduces benefits for people who claim Social Security early and continue to work.Key Facts
- The Senior Citizens’ Freedom to Work Act is a Republican-backed bill introduced by Representative Greg Murphy and supported by Senator Rick Scott.
- The bill would repeal the Social Security "retirement earnings test" that currently reduces benefits if early claimants earn above a certain amount.
- Under current law, workers who claim benefits before full retirement age lose $1 in benefits for every $2 earned above $24,480 in 2026.
- Benefits withheld under this test are later credited back after reaching full retirement age.
- The proposal seeks to remove this penalty so seniors can work and earn without benefit reductions.
- Supporters say it will help seniors who work out of necessity or want to keep earning without losing benefits.
- Critics worry the change could increase costs and strain the long-term finances of the Social Security Trust Fund.
- The repeal would mainly help working seniors in physically demanding jobs, small business owners, and those supplementing income due to higher living costs.
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