Scott Releases Retirement Security Report, Bill to Eliminate Work Disincentive for Seniors
WASHINGTON – Today, U.S. Senate Special Committee on Aging Ranking Member Tim Scott (R-S.C.) released a report titled “The American Dream in our Golden Years: Improving Retirement Security and Building Independence,” which examines current trends and gaps in the retirement savings system. Scott also introduced the Senior Citizens’ Freedom to Work Act, along with Senator Marco Rubio (R-Fla.), to repeal the Social Security Retirement Earnings Test (RET), a key recommendation in the report.
“The American Dream shouldn’t stop at a certain age,” said Ranking Member Scott. “By implementing this report’s key recommendations — like the Senior Citizens’ Freedom to Work Act — we can empower older Americans to continue doing what they love in their Golden Years with peace of mind, knowing their retirement is secure.”
Scott’s report reveals that, while the American retirement system does not need an overhaul, some threats to the system and gaps in coverage remain. The report praises the bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) Act and outlines several additional reforms to strengthen retirement security, including:
- Expanding lifetime income options for retirees;
- Codifying auto-portability regulations to prevent leakage;
- Plan benefit expense flexibility to increase retirement options;
- Expanding and strengthening health savings accounts;
- Protecting the gig economy;
- Supporting golden entrepreneurs; and
- Eliminating the RET in Social Security.
The RET cuts seniors’ Social Security benefits in half if they are below full retirement age, are employed, and earn more than $18,960. Although lost benefits are replaced at full retirement age, many seniors are unaware that their benefits will be replaced and, consequently, choose not to work or choose to work fewer hours to stay below the threshold.
Scott and Rubio’s Senior Citizens’ Freedom to Work Act would repeal the RET altogether, clearing up confusion for seniors and encouraging them to work as long as they desire.
Click HERE to read Scott’s full report.
Click HERE to read Scott’s full bill.