EarningsTest News & Analysis

Social Security Changes: Earnings Test Proposal Could Impact Benefits

The Senior Citizens' Freedom to Work Act has been proposed to repeal the retirement earnings test, which currently reduces Social Security benefits for early retirees who continue to work. For 2026, individuals under full retirement age can earn up to $24,480 before the test applies, with a $1 deduction from benefits for every $2 earned above this limit. Those reaching full retirement age can earn up to $65,160, with $1 deducted for every $3 over this threshold. The bill aims to allow retirees to work without penalty, impacting workers and their benefit calculations. It awaits further legislative action.