Could changing some of the terminology around Social Security claiming help people lock in higher retirement benefits? The sponsors of H.R. 5284, the Claiming Age Clarity Act think so. By replacing terms such as “early eligibility age” with “minimum monthly benefit age” and “delayed retirement credits” with “maximum monthly benefit age,” it is believed that people will better understand their claiming options.
A 2023 study tested different language options and found that at least hypothetically, people were more inclined to claim later (and therefore lock in higher monthly benefits) when presented with the revised language.
Under this new bipartisan legislation, SSA will begin using the following new terms both online and in print by January 1, 2027:
- “Early Eligibility Age” will become “Minimum Benefit Age”—age 62, the earliest age at which an individual can begin receiving retirement benefits, with permanently lower monthly benefits than those received at standard benefit age.
- “Full Retirement Age” and “Normal Retirement Age” will become “Standard Benefit Age”—generally age 66 or 67, depending on an individual’s birth year.
- “Delayed Retirement Age” will become “Maximum Benefit Age”—age 70, the latest age someone can begin receiving benefits. Electing to delay receiving benefits by a year increases an individual's benefits, up to a maximum of 24% more than the standard benefit.
We will be updating our Savvy materials accordingly and encourage financial advisors to start using this new language: 62 is now Minimum Benefit Age, 67 is now Standard Benefit Age, and 70 is now Maximum Benefit Age.