Four senators have reintroduced bills aimed at helping more Americans maximize their Social Security benefits by changing terminology and providing more information about their individual contributions.
One bill changes the Social Security Administration’s terminology from “early eligibility age,” “full retirement age,” and “delayed retirement credits” to “minimum monthly benefit age,” “standard monthly benefit age,” and “maximum monthly benefit age” to better reflect how the program works, according to a news release.
Sen. Chris Coons, D-Del., Sen. Bill Cassidy, R-La., Sen. Tim Kaine D-Va., and Sen. Susan Collins, R-Maine, reintroduced the bill April 29 to provide additional clarity for Americans deciding when to claim their benefits.
Social Security benefits are available to Americans who are as young as age 62, but those who choose to claim their benefits later receive higher monthly payments, with maximum benefits available to those who claim at age 70 or older. The full retirement age is 66 or 67 depending on what year a person was born.
In 2023, 23% of new beneficiaries claimed Social Security at age 62, while another 59% claimed it from ages 63 to 66 and only 9% claimed it at age 70 or later, according to data from the Social Security Administration.
A person who turns 62 in 2025 and immediately claims Social Security receives a benefit roughly 30% lower than if they waited to claim it at age 67.
People who beat the average life expectancy but claim Social Security early leave money on the table, experts say, though knowing when to claim it is difficult.
Most people do not claim benefits at the age that would maximize their income in retirement, the senators said in the news release.
“Social Security is the foundation of most older Americans’ retirement plans, but many of them don’t have the information they need to maximize the Social Security benefits that they’ve earned,” Coons said in the release. “This is a common-sense solution that makes it easier for every American to make an informed decision about when to claim benefits at the best time and get the most out of their retirement income.”
The bill was last introduced in 2023 during the previous congressional session, but did not advance.
A separate bill introduced by the same group of senators aims to help Americans better plan for retirement by requiring the SSA to mail Social Security statements about how much a person has paid into Social Security and Medicare every five years to individuals with Social Security accounts between the ages of 25 and 54, every two years for those between the ages of 55 and 59, and annually for those 60 and above.
