U.S. Sens. Bill Cassidy, M.D. (R-LA), Tim Kaine (D-VA), Susan Collins (R-ME), and Chris Coons (D-DE) introduced a bill that seeks to help Americans make more informed decisions regarding when to claim Social Security Benefits.
Social Security benefits are available to claim for people as young as 62. However, those who claim their benefits later receive higher monthly payments, with the maximum benefits available to those who claim at 70 or older. The senators point out that most people do not claim benefits at the age that would maximize their income in retirement. As a result, they forgo a significant amount of retirement income.
To help Americans better understand when to claim their benefits, this bill changes the Social Security Administration’s (SSA) terminology from “early eligibility age,” “full retirement age,” and “delayed retirement credits” to “minimum benefit age,” “standard benefit age,” and “maximum benefit age.” These updated terms better reflect Social Security’s claiming design and how the program works.
Further, it would require the SSA to mail social security statements — which detail 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 and two years for those between the ages of 55 and 59. For those aged 60 and over, they would be mailed annually.
“Americans have earned their Social Security and should have the best financial information available when they retire,” Cassidy said. “Our bill ensures Americans planning for retirement get the most out of their benefit.”
The four senators also sent a letter to the SSA urging them to develop an action plan to help individuals make more informed claiming decisions.
“[W]e believe SSA should take more proactive measures to provide Americans with the tools and resources to determine how best to set themselves and their families up for financial security in retirement,” Cassidy, Kaine, Collins, and Coons wrote in the letter.
Coons said it is crucial that Americans have as much information as possible to maximize the social security benefits that they’ve earned.
“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.