Millions of Americans can still claim Social Security as early as age 62, but a new act could soon change the names used to describe key claiming ages.
The Claiming Age Clarity Act has passed the Senate and is now going to the president for approval. Supporters say that the current language makes people think that age 67 is the "best" or "normal" age to start getting benefits. They point out that claiming benefits earlier or later can greatly change the monthly payment amounts.
The proposal plans to rename certain benefit-related ages. Age 62 will be called the "Minimum Monthly Benefit Age." Age 67 will be known as the "Standard Monthly Benefit Age." Age 70 will be referred to as the "Maximum Monthly Benefit Age." The actual ages will remain the same.
"The legislation will change the official names of Social Security's three significant retirement ages to the Minimum Monthly Benefit Age (62), the Standard Monthly Benefit Age (67), and the Maximum Monthly Benefit Age (70)," according to the Committee for a Responsible Federal Budget.
This change will not directly impact the 155,886 Tennessee residents who receive Social Security benefits, but it could influence future recipients to delay their claims.
Here's what to know about the proposal.
What is the Claiming Age Clarity Act?
The Claiming Age Clarity Act would rename Social Security's key claiming ages to better reflect the benefit amounts available at each milestone. The proposal does not change when Americans can claim benefits or how much they receive.
Why does Social Security claiming age matter?
The age you choose to start benefits affects how much you receive each month. If you were born in 1960 or later, your full retirement age is 67. If you claim your benefits at 62, your payment will be about 30% less. If you wait until age 70, you will get more money because of delayed retirement credits.
Here's an example using a worker eligible for a $2,000 monthly benefit at age 67:
- Claim at 62: about $1,400 per month
- Claim at 67: $2,000 per month
- Claim at 70: about $2,480 per month
If you wait until age 70 to claim Social Security instead of claiming at age 62, you could receive about $1,080 more each month. This is nearly a 77% increase, based on retirement planning data and Social Security rules.
Can you still collect Social Security at age 62?
One of the main questions about the proposed terminology changes is whether Americans can still claim partial benefits at age 62. The answer is yes; the proposal only changes the names for the claiming ages, not the actual eligibility ages.
Workers would still be able to:
- Claim reduced benefits beginning at age 62.
- Receive full benefits at their full retirement age, generally 67 for people born in 1960 or later.
- Earn delayed retirement credits by waiting until age 70.
What are the new Social Security retirement age terms?
If enacted, the bill would rename the three key milestones:
- Age 62: Minimum Monthly Benefit Age
- Age 67: Standard Monthly Benefit Age
- Age 70: Maximum Monthly Benefit Age
According to the Committee for a Responsible Federal Budget, the goal is to help Americans better understand the tradeoff between claiming benefits earlier and receiving smaller monthly checks or waiting longer for larger payments.
USA TODAY contributed to this report.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at jordan.green@commercialappeal.com.
This article originally appeared on Memphis Commercial Appeal: Social Security claiming ages may be renamed. How it affects Tennessee
