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Social Security Recipients Could Soon Work Without Benefit Penalties

A rule that's prevented a portion of Social Security's beneficiaries from working as much as they'd like to in retirement may be on the verge of being undone.

Social Security Recipients Could Soon Work Without Benefit Penalties

Published August 22, 2026 · Category: Finance

Overview

Social Security beneficiaries who have been forced to choose between earning less work-based income and accepting reduced retirement benefits payments may soon not need to make that choice. They could have the best of both worlds, so to speak.

That's the purpose of the Senior Citizens Freedom to Work Act of 2026, presented to Congress by Sen. Rick Scott (R-Fla.) and Rep. Greg Murphy (R-N.C.) as H.R. 8344. If it becomes law, the rule that can penalize people already receiving Social Security retirement benefits by reducing the size of their payments if certain work-based income thresholds are eclipsed will simply no longer apply.

Details

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Source

Originally published at www.fool.com.

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