Social Security recipients in the United States could soon have the freedom to work without losing benefits, under a new bill introduced in Congress. The legislation is designed to eliminate outdated restrictions that reduce benefits for older Americans who continue earning income after claiming early retirement.
The Seniors Citizens Freedom to Work Act
TheSeniors Citizens Freedom to Work Actwas introduced by Senator Rick Scott (R-Florida) and Representative Greg Murphy (R-North Carolina). The bill targets the Retirement Earnings Test (RET), which currently penalizes seniors who earn above a set threshold before reaching full retirement age.
“The RET was passed during the Great Depression to free up jobs for younger Americans,” Scott said. “But as we are all aware – it’s not the 1930’s anymore, and we shouldn’t expect our seniors to be punished today by outdated policies passed then. Aging Americans deserve better.”
If passed, the bill would allow older Americans to keep 100% of their Social Security benefits regardless of earnings, removing the need for complex recalculations at full retirement age.
How the Retirement Earnings Test Works
In 2026, the RET affects Social Security recipients under full retirement age (FRA) who earn more than $24,480 annually. For every $2 earned above this limit, $1 of benefits is withheld.
Those reaching FRA in 2026 face a higher limit of $65,160, with $1 withheld for every $3 earned above the threshold in the months prior to their birthday. Once FRA is reached, earnings limits are removed.
Currently, benefits reduced under the RET are recalculated at FRA, giving recipients credit for months in which benefits were withheld. Eliminating the RET would simplify this process and allow seniors to retain all earnings and benefits immediately.
Potential Benefits for Seniors and the Economy
Removing the RET could encourage older Americans to remain in the workforce longer, supplementing their retirement income and reducing financial pressures. It also has broader economic implications, keeping experienced workers in the labor market and helping employers facing skill shortages.
Experts note that the RET was originally intended to free up jobs for younger workers during the 1930s, but today, seniors often wish to work for financial security or personal fulfillment rather than necessity. The legislation reflects changing demographics and the increasing desire for flexible retirement options.
Legislative Status
The bill has been introduced in both the Senate Committee on Finance and the House Ways and Means Committee. It is currently under review, with debate and potential amendments expected before any vote.
If passed, the Seniors Citizens Freedom to Work Act could reshape retirement planning, giving seniors more financial freedom and removing a rule widely seen as outdated and punitive. Advocates argue it would modernize Social Security and better reflect today’s workforce realities.
