Social Security claiming ages may soon get new names. What retirees need to know
One of the biggest decisions retirees make — when to claim Social Security benefits — would be described differently under a bill that may soon become law.
The Claiming Age Clarity Act, a bipartisan bill that changes certain terms to describe the ages when a worker may claim Social Security retirement benefits, passed the Senate on Tuesday.
The bill is now on its way to President Donald Trump for his signature. The White House did not respond to CNBC.com's request for comment on whether and when he might sign.
Claiming Social Security benefits at age 62 — when qualifying retirees first become eligible — may permanently reduce benefits by up to 30% compared to claiming at full retirement age. By waiting until age 67, individuals born in 1960 or later may receive 100% of the benefits they've earned. And for each year delayed past that "full" retirement age, up to age 70, prospective beneficiaries receive an 8% benefit boost.
The Claiming Age Clarity Act calls for modernizing the terminology around those claiming ages to help retirees better understand the tradeoffs of their decisions. It does not change the claiming ages themselves or how benefits are paid.
"This straightforward legislation aims to simplify bureaucratic jargon which may mislead Americans into making poor financial decisions," Rep. Lloyd Smucker, R-Pa., said in a statement when he introduced the bill with Rep. Don Beyer, D-Va., in 2025.
Under the terms of the bill, age 62 would now be described as "minimum benefit age" rather than the term the Social Security Administration currently uses, "early eligibility age."
For age 66 to 67, when an individual receives 100% of their earned benefits depending on their birth year, the agency would use "standard benefit age" rather than the current "full retirement age."
And for age 70, the Social Security Administration would describe it as "maximum benefit age" rather than the current "delayed retirement age."
The Senate passing the bill is "great news for Americans making decisions about their Social Security benefits," Sen. Bill Cassidy, R-La., who proposed the Senate version of the bill in 2025, said on X. Now, Congress must "tackle the bigger challenge facing Social Security" regarding the insolvency dates the program's trust funds face, Cassidy said.
Social Security's funding woes are one of the reasons people often cite for claiming benefits early. Yet experts generally say it's often still in retirees' best interest to delay claiming for as long as possible up to age 70.
"Changing the name is a good step, an important step, but there's more work to be done," said Shai Akabas, vice president of economic policy at the Bipartisan Policy Center. The Washington, D.C.-based think tank's lobbying affiliate, BPC Action, backed the bill.
The idea for the language changes started about 10 years ago, according to Akabas. Other efforts to strengthen communication around Social Security retirement claiming benefits are being considered, including increasing the frequency of mailed benefit statements, he said.
The Congressional Budget Office has not scored the Claiming Age Clarity Act for its costs. In the long term, the change should not significantly affect the program's finances, Akabas said. In the short term, it may actually save the program money, since it may prompt people to claim benefits later than they otherwise would, he said.
Ultimately, broader Social Security reform addressing the program's funding issues will require bipartisan compromise. The passage of the Claiming Age Clarity Act, while a smaller change, signals an opening for lawmakers on both sides of the aisle to continue talking about the program, Akabas said.
The AARP also endorsed the Claiming Age Clarity Act. Research from the nonprofit organization, which represents Americans ages 50 and over, has found that while people know postponing Social Security increases their retirement benefits, they may not be sure about the exact age to maximize their benefits.
