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March 07, 2023 at 12:49 PM
New legislation would change the Social Security Administration’s benefits statement terminology from “early eligibility age,” “full retirement age” and “delayed retirement credits” to “minimum benefit age,” “standard benefit age” and “maximum benefit age” to better reflect Social Security’s claiming design and how the program works.
The bill, S 664, introduced Monday by Sen. Bill Cassidy, R-La., is co-sponsored by Sens. Chris Coons, D-Del.; Susan Collins, R-Maine; and Tim Kaine, D-Va.
The bill also requires the SSA to mail Social Security statements every five years to account holders 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.
“As American workers prepare for retirement, it’s crucial that they have as much information as possible to ensure they can maximize the social security benefits that they’ve earned,” Coons said in a statement. “Through simple language changes, we can make it easier for countless Americans to claim social security at the best time and get the most out of their retirement income. Bipartisan legislation that improves social security is possible, and I encourage the Senate to take up and swiftly pass this commonsense bill,” Coons said.
“Americans have earned their Social Security and should have the best financial information available when they retire,” Cassidy added. “Our bill ensures Americans planning for retirement get the most out of their benefit.”
Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, told ThinkAdvisor on Tuesday that when to start Social Security benefits is very important and “that process today is overly complex, primarily because the best time to retire depends so much on individual circumstances such as age, number of years worked, earnings among other things.”
In working with those nearing retirement, Johnson continued, she often uses what she calls “the ‘reduced benefit ages,’ ‘unreduced benefit age’ and ‘maximum benefit age.’”
