En esta noticia
The United States Congress is advancing a reform that could change the rules of Social Security for hundreds of thousands of retirees. Bill H.R. 8344, the Senior Citizens’ Freedom to Work Act of 2026, proposes eliminating the mechanism that withholds part of the benefits of those who claim before full retirement age and continue earning income.
If approved, these retirees would receive the full amount of their Social Security benefit, with no discounts or withholding. The initiative was introduced by Representative Greg Murphy (R-N.C.) and has parallel legislation in the Senate, led by Senator Rick Scott (R-Fla.). If approved, it would take effect for fiscal years after December 31, 2026.
What is the Retirement Earnings Test and what would change for Social Security retirees?
Under Social Security rules in effect in 2026, the SSA withholds $1 for every $2 the beneficiary earns above $24,480 a year. That means someone earning $34,480—just $10,000 above the limit—loses $5,000 in benefits. The new law would eliminate that penalty.
There is a different threshold for those who reach full retirement age during 2026: in that case, $1 is withheld for every $3 earned above $65,160, but only in the months before the birthday. Beneficiaries who have already reached full retirement age are not subject to the RET and receive the full amount regardless of income.
How much does Social Security withhold today?
- Not yet at full retirement age: $1 withheld for every $2 earned above $24,480 annually
- Turning full retirement age in 2026: $1 withheld for every $3 earned above $65,160, only before the birthday
- Full retirement age reached: the RET does not apply; they receive the full benefit
Who qualifies and what is the debate surrounding this historic change in Social Security?
According to the Congressional Research Service, about 520,000 beneficiaries of Social Security —out of a total of 70 million— are subject to the RET and would qualify under the new law. It is important to clarify that the amounts withheld today are not lost: the SSA recalculates them upward when the beneficiary reaches full retirement age.
However, for those who need that income now, the delay represents a real financial impact. The main debate centers on the cost: eliminating the RET would mean paying more benefits immediately, adding pressure to a trust fund that is already projected to run a deficit by early 2030s. The bill remains in committee and has not yet been put to a vote.