Millions of Social Security recipients would see an increase in immediate benefits under a new proposal from Republican lawmakers.
Sen. Rick Scott of Florida and Rep. Greg Murphy of North Carolina introduced the Seniors Citizens’ Freedom to Work Act in April. The bill would repeal the existing Social Security Retirement Earnings Test that delays a portion of benefits for people below full retirement age and still in the workforce.
“American seniors’ ability to earn income and enjoy the dignity of work should not be penalized by arbitrary parameters to receive Social Security benefits,” Murphy said in a statement. “While certain guardrails are in place to ensure the viability of Social Security and incentivize participation in the workforce, the Retirement Earnings Test does neither and is a bureaucratic hurdle that does more harm than good.”
Under the bill, early retirees – individuals between age 62 and their full retirement age – would be allowed to earn income without seeing their Social Security benefits temporarily reduced or withheld.
Currently, benefits are reduced for people who earn above the RET limit, a figure that’s recalculated each year. For 2026, RET is $24,480. If a person earns more than that, $1 in benefits is withheld for every $2 over the threshold. Those reaching FRA in 2026 can earn up to $65,160 a year with $1 withheld for every $3 earned.
If a beneficiary keeps working after full retirement age, the earnings cap is removed.
Depending on your birth year, FRA is between age 66 and 10 months and age 67.
Although the reduction in benefits is returned to seniors after they hit FRA, many seniors are unaware of this and choose to earn below the income threshold, Murphy said.
The bill has been introduced in the House and Senate. It is currently in the Senate Committee on Finance and the House Ways and Means Committee.
Nearly 75 million Americans, including 54 million retirees, receive Social Security benefits.
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