Hagel spoke in favor of legislation that would repeal the earnings limit on Social Security recipients between the ages of 65 and 70. This legislation will repeal the Social Security earnings test, which is a disincentive for seniors to work. It will allow seniors to go back to work or continue to work and not worry about being penalized or losing their Social Security benefits. As America moves into the new century, we need more workers, not less workers.
Productive capacity is the engine that drives economic growth.
That means we must have skilled and experienced workers and managers. The passage of this bill helps America with this great challenge. It will help America retain this vital resource, Hagel added. The Social Security Administration has estimated that approximately 800,000 seniors lost some or all of their benefits under the earnings test. Hagel also cautioned that this should not be seen as a long-term solution for Social Security.