US Senate approves new names for Social Security age thresholds — CNBC
The US Senate has approved the bipartisan Claiming Age Clarity Act, which changes the terms used to designate the age at which Americans can begin receiving retirement benefits under Social Security. The document has been sent to President Donald Trump for signature, CNBC reports.
The bill does not change the age thresholds for claiming benefits or the procedure for calculating them. Its purpose is to help people better understand the consequences of choosing when to apply for retirement benefits.
What terms are proposed
The age of 62, when people who meet the criteria can first qualify for benefits, is proposed to be called the “minimum benefit claiming age” instead of the current term, “early eligibility age.”
The age of 66 to 67, when a person receives 100% of the benefits due depending on their year of birth, is to be called the “standard benefit claiming age” instead of the “full retirement age.” For people born in 1960 or later, this age is 67.
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The age of 70 is proposed to be designated the “maximum benefit claiming age” instead of the “delayed retirement age.”
How the claiming age affects benefits
Claiming benefits at age 62 can permanently reduce their amount by up to 30% compared with claiming them at full retirement age. At the same time, for each year of delay after that age, but no later than age 70, the benefit amount increases by 8%.
The bill’s sponsors said the current bureaucratic wording may mislead people when making financial decisions. The bill was supported by the American Association of Retired Persons, AARP. Its research indicates that people generally know that benefits increase when claims are delayed, but do not always understand at what age they can receive the maximum amount.
Program funding
Senator Bill Cassidy, who introduced the Senate version of the document in 2025, said Congress must also address the future insolvency of Social Security trust funds. Shai Akabas, vice president for economic policy at the Bipartisan Policy Center, noted that changing the terminology is unlikely to significantly affect the program’s finances in the long term, but may encourage some people to claim benefits later.
