New Bill in Congress Offers Key Reform Affecting Seniors' Social Security Payments
A new proposal in Congress would allow seniors to work in order to make ends meet without fear of losing their Social Security benefits.
The “Senior Citizens’ Freedom to Work Act” would nix the Retirement Earnings Test, under which Social Security recipients lose benefits if they claim early retirement and continue earning above a particular threshold.
The bill was introduced by Rep. Greg Murphy, a Republican from North Carolina, according to an April 16 release from his office.
Florida Republican Sen. Rick Scott introduced a companion bill.
“American seniors’ ability to earn income and enjoy the dignity of work should not be penalized by arbitrary parameters to receive Social Security benefits,” Murphy said in a statement.
“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 continued.
“While certain guardrails are in place to ensure the viability of Social Security and incentivize participation in the workforce, the Retirement Earnings Test does neither and is a bureaucratic hurdle that does more harm than good.”
Under current law, the Retirement Earnings Test lowers Social Security benefits by almost 50 percent if early retirees are making over $21,240 each year.
A new legislative proposal could significantly impact older Americans who continue working. The number of working seniors has surged by a staggering 52% over the last decade, showing a growing trend of people staying in the workforce longer. This proposed bill aims to remove… pic.twitter.com/anaXqbkyel
— Realtor.com (@realtordotcom) April 28, 2026
The release from Murphy’s office noted that many seniors do not know they are eligible to have the reduction in benefits returned once they reach Full Retirement Age.
In analyzing the policy, Realtor.com noted that the “Senior Citizens’ Freedom to Work Act” comes as relying on a fixed income is more difficult amid rising costs.
Right now, those under Full Retirement Age — usually 67 years old — can earn up to $24,480 each year.
But after that income limit is reached, Social Security benefits fall by $1 for every $2 over the cap, Realtor.com described.
The company said that the number of seniors over 65 years old who are remaining in the workforce has increased since 2014.
Those living in the Northeast are most likely to remain in the workforce, a reality driven by insurance, property taxes, and maintenance associated with more expensive homeownership.
States such as New Hampshire and Massachusetts have 23.5 percent and 23.2 percent of seniors currently in their respective workforces.
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