Working Social Security recipients could see a big boost under new plan
The legislation would do away with the retirement earnings test – or RET - which reduces Social Security benefits for those who claim early retirement.
Mason Reed 
A major shift could be on the horizon for working seniors. New legislation has been introduced that would empower Social Security recipients to stay in the workforce without the fear of seeing their hard-earned benefits docked.
Eliminating the Earnings Test
Sen. Rick Scott (R-Florida) and Rep. Greg Murphy (R-North Carolina) have officially introduced the Seniors Citizens Freedom to Work Act. This proposed bill aims to scrap the retirement earnings test (RET), a policy that currently penalizes Social Security beneficiaries who choose to work while claiming early retirement.
READ MORE: Social Security payment change affects 3.6 million beneficiaries
Senator Scott argues that the policy is a relic of a bygone era. "The Retirement Earnings Test was passed during the Great Depression, specifically to push older Americans out of the workforce and free up more 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 "But as we are all aware – it’s not the 1930’s anymore, and we shouldn’t expect our seniors to be punished today by outdated policies passed then.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."
Understanding the Current RET Rules
Under current regulations for 2026, the RET threshold is set at $24,480 for individuals under their full retirement age (FRA). For every dollar earned above that limit, $1 in benefits is withheld for every $2. Those nearing their FRA this year have a higher threshold of $65,160, with $1 withheld for every $3 earned in the months leading up to their birthday.
Currently, the earnings cap is only removed once a beneficiary reaches full retirement age. While individuals affected by the RET do have their benefits recalculated at FRA to receive credit for withheld payments, the proposed bill would simplify the process by removing the test entirely.
READ MORE: Social Security payment schedule update: When will June’s payment arrive?
Legislative Status
The bill is gaining momentum, having been introduced in both the House and the Senate. It is currently being reviewed by the Senate Committee on Finance and the House Ways and Means Committee. 205focus.com will continue to monitor the progress of this legislation as it moves through Congress.
