What You Need to Know
- Social Security recipients under full retirement age who still work get a benefit cut once they reach a certain income threshold.
- The Senior Citizens Inflation Relief Act would raise that threshold through 2023.
- Extra earnings could potentially also yield a slightly higher benefit in the future, said senior advocate Mary Johnson.
Rep. Bill Posey, R-Ill., introduced Tuesday the Senior Citizens Inflation Relief Act, legislation to temporarily increase the monthly wage that Social Security recipients may earn by more than $400.
The bill “has an innovative idea for helping younger working Social Security beneficiaries deal with inflation, by allowing them to earn a bit more before their benefits would be reduced by the Social Security earnings restrictions,” Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, said Thursday in an email to ThinkAdvisor.
The Senior Citizens Inflation Relief Act would boost the monthly earnings amount in 2022 and 2023 to $2,046.67. That’s $24,560 a year.
Under current law, Johnson explained, “workers can receive Social Security benefits even while working, but they are subject to Social Security’s Earnings Restriction rules. If they are under their full retirement age they are allowed to earn $19,560 year or $1,630 per month in 2022.”