4 Senators Propose Changes to Better Inform Social Security Demands

A bipartisan group of senators has introduced legislation to help Americans make better decisions about when to apply for Social Security benefits, as many retirees lose income by applying for benefits too soon, senators said.

The proposed law would direct the Social Security Administration to change the language it uses to describe when Americans can claim their benefits and call for an increase in the frequency of mailing Social Security applications.

Senators Chris Koons, D-D, Bill Cassidy, D-Laurel, Tim Kaine, D-V, and Susan Collins, D-Ma, introduced the legislation on Monday and sent a March 2 letter to the Social Security Administration. , urging the agency to “develop an action plan” to better inform retirees about when to claim benefits.

“As American workers prepare to retire, it is imperative that they have as much information as possible to ensure they can maximize Social Security benefits earned,” Mr. Koons said in a press release. “Through simple language changes, we can make it easier for countless Americans to apply for Social Security at the best time and get the most out of their retirement income.”

Senators are specifically calling on the Social Security Administration to change its terminology for benefit claims. Currently, the age of 62 is referred to as the “early right age”, which the senators would change to the “minimum benefit age”. The age of 66-67, which is referred to as the “full retirement age”, will be changed to the “standard retirement age”. Finally, legislation will do away with the term “deferred pension credit” and refer to age 70 as the “maximum benefit age.”

The legislation also requires Social Security reports to be mailed every five years to people aged 25 to 54, every two years to people aged 55 to 59, and annually to people aged 60 and over. In addition, paper reports will be sent whenever someone starts a job or starts a new job. Applications will be mailed out whether or not someone has created an online social security account, and people will be able to opt out, according to the text of the bill.

“Americans have earned their Social Security and should have the best financial information available at retirement,” Mr. Cassidy said in a press release. “Our bill ensures that Americans planning for retirement get the most out of their benefits.”

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