Social Security Needs to Do a Better Job at Defining Retirement Age
There’s a lot of confusion over retirement age, and that could mean some retirees receive less Social Security than expected. To help clear up some of the confusion, lawmakers want to see changes to the terminology we currently use.
According to an article by CNBC, about one in five adults can correctly identify the age at which they qualify for full Social Security retirement benefits. The Claiming Act Clarity Act will make the claiming language “substantially clearer.”
For example, “early eligibility age” is currently 62. It’s the earliest age someone can start claiming Social Security retirement benefits. However, if you claim benefits before reaching full retirement age, which is 67 for anyone born after 1959, your benefits will be reduced. If passed into law, “early eligibility age” would become “minimum benefit age” to better reflect the permanent benefits reduction that beneficiaries would receive by claiming early.
Additionally, “full retirement age” would become “standard benefit age.” The article goes on to say that “delayed retirement age” would be referred to as “maximum benefit age.” Those who wait to claim Social Security at age 70 may earn an additional 8 percent increase in benefits, boosting their retirement benefits by up to 24 percent.
The Seniors Trust is committed to improving the lives and financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
