If you’re collecting Social Security before full retirement age and still working, a new bill could mean thousands more dollars in your pocket each year.
Rep. Greg Murphy, R-N.C., introduced H.R. 8344, the Senior Citizens’ Freedom to Work Act of 2026, which would repeal Social Security’s Retirement Earnings Test (RET).
Sen. Rick Scott, R-Fla., is sponsoring companion legislation in the Senate.
Who qualifies
Anyone collecting Social Security before their full retirement age who earns income above current thresholds would qualify.
Under 2026 SSA rules, the agency withholds $1 for every $2 earned above $24,480 annually.
Someone earning $34,480 — just $10,000 over the limit — loses $5,000 in benefits under the current rule. This bill eliminates that penalty entirely.
Those reaching full retirement age during 2026 face a higher threshold — $65,160 — with $1 withheld for every $3 earned above that limit in the months before their birthday.
According to the Congressional Research Service, roughly 520,000 Social Security recipients — out of approximately 70 million total beneficiaries — are currently subject to the RET.
However, there is one caveat worth noting — withheld benefits aren’t gone forever.
The SSA recalculates benefits upward once a recipient reaches full retirement age, crediting months when payments were withheld.
But for recipients who need that income now rather than later, the delay is still a real financial impact.
The real debate is short-term cost — repealing the RET means paying out more benefits now, adding pressure to a trust fund already projected to face shortfalls in the early 2030s.
The bill is currently in the Senate Committee on Finance and the House Ways and Means Committee and has not yet been voted on.
If passed, changes take effect for tax years ending after Dec. 31, 2026.
