Congress Introduces Bill to Repeal Social Security's $24,480 Earnings Test
Updated
Updated · Yahoo Finance · Sep 7
Congress Introduces Bill to Repeal Social Security's $24,480 Earnings Test
1 articles · Updated · Yahoo Finance · Sep 7
Summary
Rep. Greg Murphy and Sen. Rick Scott introduced the Senior Citizens' Freedom to Work Act in April 2026 to scrap the Retirement Earnings Test for Social Security recipients still on the job.
Under the current rule, beneficiaries below normal retirement age lose $1 in benefits for every $2 earned above $24,480 in 2026; for those reaching retirement age this year, the threshold is $65,160 and the reduction is $1 for every $3.
Workers above normal retirement age face no earnings cap or benefit withholding, making the bill a push to extend that treatment to younger beneficiaries who claim early.
The repeal effort targets a rule critics say discourages older Americans from staying employed, a significant issue given Boston College research showing 43% of beneficiaries combined work income with benefits at some point from 1992 to 2022.