A new piece of legislation is set to expand the retirement earnings threshold (RET) from the current $21,240 to $30,000.
Introduced by Rep. Glenn Grothman (R-WI), legislation, H.R. 6925, or otherwise named the Senior Independence Act, the bill would raise “the base exemption used by the Social Security Administration in determining the annual earnings limit for early retirees before monthly benefits are reduced.”
The legislation would increase “the annual earnings limitation to $30,000 (or $2,500 per month for less than full year calculations) for the year 2023 and adjust for wage inflation in the following years…,” the bill explains.
In a statement, Grothman states senior citizens wanting to work are opting to stay home due to “restrictive government regulations,” such as the “penalties associated with retirement benefits for working people.” Currently, for individuals between the ages of 62 and the full retirement age (FRA) of 67, $1 is deducted from Social Security benefit payments for every $2 earned above the current annual limit of $21,240.
“The current system in place artificially discourages senior citizens from maintaining jobs, which is why we must create an environment that allows people to remain in the workforce without fear of losing the benefits that they have earned,” Grothman added.
“The current retirement earnings threshold is outdated and punishes some seniors returning to the workforce,” said Andrew Lautz, director of Federal Policy at the National Taxpayers Union, in the same statement. “Congressman Grothman’s bill to increase the RET, from $19,560 to $30,000, with future increases tied to inflation, would enable more early retirees to return to the workforce full- or part-time without fear of being penalized by the Social Security Administration. NTU is proud to support this bill.”
If signed into law, the Senior Independence Act would take effect starting in 2024.
SEE ALSO:
- Older Adults Greatly Underestimate Social Security Benefits: NBER Research
- 2024 Social Security COLA Could Drop Below 3%
- 4 Senators Want Americans to Wait Until 70 to Claim Social Security
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
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