A bipartisan bill headed to President Donald Trump's approval is set to rename three key Social Security retirement age terms. The Claiming Age Clarity Act, introduced by Rep.
Lloyd Smucker, R-Penn, and Rep. Don Beyer, D-Virginia, passed both the House and Senate.
The aim is to replace confusing government jargon with language that better explains how claiming age affects monthly checks. Three terms changing under the new law are: This is applicable to age 62, the earliest age someone can start receiving retirement benefits.
Claiming at this age permanently lowers monthly benefits as much as 30% compared to waiting until standard benefit age. This is generally age 66 or 67, depending on birth year.
Benefits increase around 8% each year you delay past this age until 70. This is age 70, the latest someone can claim.
Delaying benefits increases monthly checks by up to 24% more than the standard benefit. The problem the law addresses is that age 62 remains the most popular claiming age, as per the Centre for Retirement Research at Boston College, despite the steep reduction in benefits.
The legislation is supported by AARP, Bipartisan Policy Centre Action, and AMAC Action. It now awaits the President's signature. .