Congressman Greg Murphy, M.D. of North Carolina’s 3rd District introduced the Senior Citizens’ Freedom to Work Act on Apr. 16, which seeks to repeal the retirement earnings test that reduces Social Security benefits for early retirees who continue working and earn above a set threshold.
The proposal aims to change how seniors receive Social Security if they decide to keep working after retiring early. Supporters say this would remove barriers for seniors who want or need additional income without being penalized.
“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. 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, retirees who claim early can see their Social Security payments reduced by nearly fifty percent if they earn more than $21,240 annually before reaching full retirement age. Although these reductions are returned once individuals reach full retirement age, many do not realize this fact and limit their earnings as a result.
Senator Rick Scott has introduced similar legislation in the Senate as chairman of the Senate Aging Committee.
Murphy has won several recent elections: he defeated Gheorghe Cormos in 2024 with over seventy-seven percent of votes according to available results; he also won against Barbara Gaskins in 2022, Daryl Farrow in 2020, and Allen Thomas in 2019 according to election records.
The broader implications could affect how millions of Americans plan for work during retirement years if Congress moves forward with repealing or changing existing rules.
