The SWIFT Act would let people claim Social Security earlier without losing benefits to the earnings test

The SWIFT Act (Strengthening Work Incentives and Financial Security for Transition-Age Youth) is a proposed federal law that would change how Social Security counts money you earn before you reach full retirement age. Right now, if you claim benefits early and earn above a certain amount, Social Security reduces your monthly payment dollar-for-dollar. The SWIFT Act would eliminate that earnings test for people who claim before full retirement age, meaning you could work and receive your full benefit amount at the same time.

This is not yet law. The bill has been introduced in Congress but has not passed. Understanding what it proposes matters because it shows what rules might change and why some people advocate for those changes. If it becomes law, the change would affect millions of people who claim Social Security between ages 62 and 66.

Key Takeaways

  • The SWIFT Act would remove the earnings test that currently reduces Social Security benefits if you work and claim before full retirement age.
  • Under current rules, Social Security reduces your benefit by $1 for every $2 you earn above $23,400 per year (2024 limit); the SWIFT Act would eliminate this reduction.
  • The change would affect people who claim Social Security between ages 62 and full retirement age, which ranges from 66 to 67 depending on birth year.
  • The bill has been proposed but is not yet law, so current earnings test rules still apply to anyone claiming Social Security now.

How the current earnings test works

If you claim Social Security before reaching full retirement age and earn wages from work, Social Security deducts money from your monthly benefit. For 2024, the limit is $23,400 per year. For every $2 you earn above that amount, your benefit is reduced by $1. The year you reach full retirement age, the limit is higher ($62,160 in 2024), and the reduction only applies to earnings before the month you turn full retirement age.

Once you reach full retirement age, the earnings test no longer applies. You can earn any amount and receive your full benefit. This rule exists because Social Security was designed as a retirement program — the idea is that if you are working substantially, you may not need the benefit yet.

The earnings test affects people who claim at 62, 63, 64, or 65. It does not affect people who wait until full retirement age or later. It also does not affect unearned income like pensions, investment returns, or rental income — only wages from employment.

What the SWIFT Act would change

The SWIFT Act would remove the earnings test entirely for people who claim Social Security before full retirement age. This means if you claimed at 62 and earned $50,000 per year, your benefit would not be reduced. You would receive your full early-claim benefit amount plus your full salary.

The bill would not change the benefit amount itself. If you claim at 62 instead of waiting until 67, your monthly payment is still permanently reduced by roughly 30 percent. The SWIFT Act only removes the penalty for working while receiving that reduced benefit.

The proposal also includes provisions related to work incentives for younger people receiving Social Security Disability Insurance (SSDI), though the earnings test change is the most significant part affecting early retirees.

Who would be affected if the SWIFT Act passes

The change would affect anyone who claims Social Security between ages 62 and full retirement age and continues to work. This includes people who claim early because they need the income, people who claim early and then find or continue employment, and people who claim early while phasing into retirement.

The change would not affect people who wait until full retirement age or later, because the earnings test does not apply to them now. It would not affect people who claim early and do not work. It would not affect people receiving Supplemental Security Income (SSI) or other means-tested programs, which have their own separate rules.

The Congressional Budget Office has not yet published an official cost estimate for the SWIFT Act, so the exact number of people affected is not known. However, roughly 2 million people per year claim Social Security at age 62, and a portion of those continue working.

Arguments in favor of the SWIFT Act

Supporters argue that the earnings test discourages work and creates a penalty for people who want to stay employed. They point out that removing the test would let people claim benefits early if they need them for other reasons — health costs, caregiving, or reduced hours — while still working and earning income. This could reduce poverty among older workers who claim early.

Advocates also note that the earnings test is unusual compared to other countries' systems and that it conflicts with the goal of encouraging work among older adults. Some argue it is outdated given longer lifespans and changing work patterns.

Arguments against the SWIFT Act

Critics argue that removing the earnings test would increase the cost to Social Security significantly, because more people would receive full benefits while working. This could accelerate the timeline for when the Social Security trust fund runs short of money to pay full benefits, currently projected for 2034.

Opponents also note that the earnings test serves a purpose: it targets benefits toward people who truly need retirement income, not toward people who are working full-time and earning substantial wages. They argue that removing it would shift money to higher-income workers and away from the program's original purpose.

Current status of the bill

The SWIFT Act has been introduced in Congress but has not passed into law. Bills are introduced regularly and most do not become law. The status of this bill changes as Congress considers it, votes on it, or lets it expire at the end of a session.

To find the current status, you can search for "SWIFT Act" on Congress.gov, which tracks all federal legislation. You can also contact your representative or senator's office to ask whether they support the bill.

Until the bill passes and is signed into law, the current earnings test rules apply to anyone claiming Social Security before full retirement age. If you are considering claiming early and you work, the earnings test is part of your decision.

Frequently Asked Questions

Does the SWIFT Act affect my benefits if I claim Social Security now?

No. The SWIFT Act is not yet law. Current earnings test rules still apply to anyone claiming Social Security now or in the near future. If the bill passes in the future, it would only affect people who claim after it becomes law.

If the SWIFT Act passes, would my benefit amount increase?

No. The bill would not change the amount of your monthly benefit. It would only remove the reduction that happens when you work. If you claim at 62, your benefit is permanently lower than if you wait until full retirement age — that does not change under the SWIFT Act.

What is my full retirement age?

Full retirement age depends on your birth year. If you were born in 1943–1954, it is 66. If you were born in 1955–1960, it is between 66 and 67. If you were born in 1960 or later, it is 67. You can find your exact age on your Social Security statement or by using the calculator at ssa.gov.

Can I work and claim Social Security at the same time right now?

Yes, but if you claim before full retirement age and earn above the annual limit, your benefit will be reduced. For 2024, the limit is $23,400. Once you reach full retirement age, you can work and receive your full benefit with no reduction.

Where can I learn more about the SWIFT Act?

Search for "SWIFT Act" on Congress.gov to read the full text of the bill and track its progress. You can also contact your representative's office or visit advocacy organizations focused on Social Security policy for their position on the bill.