Congressman Bill Posey (R-IL) introduced this month legislation that would temporarily raise the threshold of income Social Security recipients under full retirement age could earn while still working.
If passed, the Senior Citizens Inflation Relief Act (HR 7692) would increase the monthly earnings limit by more than $400 through 2023.
The idea behind the bill is to help Social Security recipients manage the effects of rising inflation on their income by allowing them to earn more before their Social Security benefits are reduced.
Under current law, Social Security recipients at full retirement age can earn $19,560 year (or $1,630 per month) in 2022.
The Senior Citizens Inflation Relief Act would increase the allowed monthly earnings amount in 2022 and 2023 to $24,560 a year (or about $2,046 per month).
According Social Security’s website:
How Much Can You Earn and Still Get Social Security Benefits?
When you begin receiving Social Security retirement benefits, you are considered retired for our purposes. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits.
If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.
If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $19,560.
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2022, this limit on your earnings is $51,960. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
2023 COLA
As of April, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 8.9 percent over the last 12 months — the highest level in more than 40 years.
While the official cost-of-living (COLA) adjustment for Social Security recipients will not be announced until mid-October, the current trend based on the CPI-W is about 6 percent.
Each year’s COLA is determined by comparing the change in the CPI-W from year to year, based on the average of the third-quarter months of July, August and September.
To read the full text of the proposed legislation, go here.