Work more, lose less? New bill aims to end Social Security penalty

A new bill introduced in Congress would allow Social Security recipients to continue working without having their benefits reduced. The proposed Senior Citizens’ Freedom to Work Act would eliminate the retirement earnings test, which currently lowers benefits for individuals who claim Social Security before reaching full retirement age and earn more than the annual income limit.

Supporters of the bill argue that the current system discourages seniors from remaining in the workforce, even as many older Americans continue working to keep up with rising costs such as property taxes, insurance, and mortgage payments. Under existing law, benefits are temporarily reduced by $1 for every $2 earned above the earnings cap.

The legislation was introduced by Rick Scott and Greg Murphy, who say the proposal would give retirees greater financial flexibility and allow them to access the full benefits they earned throughout their careers.

For more information see Eric Revell “Work more, lose less? New bill aims to end Social Security penalty,” Fox Business, April 29, 2026.