Bipartisan Bill to Help Retirees Make Informed Decisions on Social Security Benefits
As Americans prepare for retirement, it is vital that they have the information they need to make the best decisions about when to claim their Social Security Benefits. A bipartisan bill introduced by U.S. Sens. Bill Cassidy (R-LA) and Susan Collins (R-ME) seeks to provide that information by changing the Social Security Administration (SSA)’s terminology from “early eligibility age,” “full retirement age,” and “delayed retirement credits” to “minimum benefit age,” “standard benefit age,” and “maximum benefit age.”
Under the new legislation, all working Americans would receive updates on how much in benefits they may receive at ages 62 to 70, along with an explanation of their options every five years once turning age 25, with the frequency increasing to every two years starting from age 55 and annually from age 60. Whenever someone enters the workforce or begins a new job, a paper statement will be sent. Regardless of whether or not an individual has created an online Social Security account, statements will be mailed, and they will have the option to opt out, as stated in the bill text.
The proposed Social Security plan, which includes raising the retirement age to 70, would lead to a benefit cut by lowering the total of Social Security payments collected in a retiree's lifetime. As life expectancy increases and a greater percentage of people’s retirement income comes from their own life’s savings and investing, people are needing to work longer to hit their retirement wealth objectives. By raising the retirement age, the new standard would be aligned with the new reality and those that can afford to retire will continue to have that option.
Senator Chris Coons (D-DE) said in a statement, “As American workers prepare for retirement, it’s crucial that they have as much information as possible to ensure they can maximize the Social Security benefits that they’ve earned. Through simple language changes, we can make it easier for countless Americans to claim Social Security at the best time and get the most out of their retirement income. Bipartisan legislation that improves social security is possible, and I encourage the Senate to take up and swiftly pass this commonsense bill.”
The new legislation would provide retirees with the tools and resources to make more advantageous claiming decisions, as well as setting them up for financial security in retirement.
0. “These lawmakers are pushing hard to ‘make it easier' for Americans to maximize their Social Security benefits — plus 3 …” Yahoo Life, 12 Mar. 2023, https://www.yahoo.com/lifestyle/lawmakers-pushing-hard-easier-americans-130000921.html
1. “Bipartisan Senate Group Calls for Social Security Changes” National Association of Plan Advisors, 6 Mar. 2023, https://www.napa-net.org/news-info/daily-news/bipartisan-senate-group-calls-social-security-changes
2. “4 senators propose changes to better inform Social Security claiming” Pensions & Investments, 8 Mar. 2023, https://www.pionline.com/legislation/4-senators-propose-changes-better-inform-social-security-claiming
3. “Why Congress Is Talking About Raising The Retirement Age” Forbes, 8 Mar. 2023, https://www.forbes.com/sites/chriscarosa/2023/03/07/why-do-they-keep-talking-about-raising-the-retirement-age/
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