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Exploring the Social Security Earnings Test
In a post on AEI.org, Sita Nataraj Slavov (Nonresident Senior Fellow) and Alan D. Viard (Senior Fellow) take a detailed look at Social Security’s often misunderstood Earnings Test…that set of rules that govern how much workers who draw Social Security benefits before their full retirement age can earn before reductions of their monthly benefits. The authors present the case that the Earnings Test is often misperceived as a tax–and therefore a disincentive to remaining in the workforce. As they explain, the withholding of benefits actually leads to a future increase in monthly payments, and therefore needs to be better understood. They also suggest complete elimination of the Test as an alternative. Read this insightful piece here…