Congress weighs Social Security earnings test repeal

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1–2 minutes

Summary

Lawmakers proposed ending a rule that withholds some Social Security benefits from people who work before full retirement age.

Why this matters

The proposal could affect people who claim Social Security before full retirement age and keep working, changing how much they receive in the short term. It also has implications for debate over Social Security's long-term finances.

Congress is considering whether to repeal a Social Security rule that reduces benefits for some people who claim them before reaching full retirement age and continue working.

In April 2026, Rep. Greg Murphy, R-N.C., and Sen. Rick Scott, R-Fla., introduced the Senior Citizens’ Freedom to Work Act to repeal the Retirement Earnings Test. The rule defers benefits for some people below normal retirement age who earn above set limits.

According to the Center for Retirement Research at Boston College, 43% of Social Security beneficiaries at some point between 1992 and 2022 received both earnings from work and benefits.

In 2026, the earnings limit is $24,480 for anyone reaching normal retirement age in 2027 or later. The Social Security Administration withholds $1 in benefits for every $2 earned above that amount. For people reaching normal retirement age in 2026, the threshold is $65,160, and $1 in benefits is withheld for every $3 earned above it. Once beneficiaries are above normal retirement age, there is no earnings limit.

Murphy said the rule should be eliminated. “Current law unnecessarily complicates seniors’ right to access the benefits they paid into for the entirety of their careers and must be done away with,” he said.

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