Congress Debates Repeal of Social Security Retirement Earnings Test Amid Trust Fund Concerns
The Social Security Administration (SSA) is under scrutiny as Congress considers repealing the Retirement Earnings Test (RET). This test currently allows the SSA to withhold a portion of benefits from retirees who earn above specific income thresholds. For individuals reaching their Normal Retirement Age (NRA) in 2027 or later, the threshold is $24,480, with $1 withheld for every $2 earned above this limit. However, for those reaching their NRA in 2026, the threshold is significantly higher at $65,160, and only $1 is withheld for every $3 earned over this amount. Once a beneficiary is above their NRA, there are no limits or withholdings on earnings. Critics, such as Rachel Greszler of the Economic Policy Innovation Center, argue that the RET discourages older Americans from remaining in the workforce. In April 2026, Representative Greg Murphy and Senator Rick Scott introduced the Senior Citizens' Freedom to Work Act to repeal the RET. Research from the Center for Retirement Research at Boston College indic...