A bipartisan group of senators has filed legislation to improve the public’s understanding of the ideal timing to begin collecting Social Security.
In addition, the group is requesting that the Social Security Administration investigate why Americans claim benefits early and determine how to educate the public on the appropriate age to begin receiving payments.
When To Start Receiving Social Security Benefits
While some legislators are proposing changes to Social Security, one group argues that many retirees are already being shortchanged. The majority of Americans collect benefits early, despite increased life expectancies, leaving millions of seniors with fewer resources later in life.
Bill Cassidy, R-Louisiana, Tim Kaine, D-Virginia, Susan Collins, R-Maine, and Chris Coons, D-Delaware, sponsored legislation and sent a letter to interim Social Security Administrator Kilolo Kijakazi requesting that the agency improve how it educates the public on when to begin collecting benefits.
By claiming benefits early, Americans forego a substantial portion of their retirement income, senators stated. A 2019 study indicated that older Adults will lose a total of $3.4 trillion in potential income due to early claiming, or an average of $111,000 per household over the course of their lifetimes.”
With the highest rate of early claimants, this is a significant issue. The second largest group filed for benefits at the full retirement age of 66, as opposed to waiting until the maximum benefit age of 70.
The senators claim that the words used to describe retirement ages cause confusion among the general population.
According to the group’s announcement, this legislation modifies the 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’ to more accurately reflect the program’s claiming structure and operation.
Experts, like Alice H. Munnell, director of the Center for Retirement Research at Boston College, have argued that it is deceptive not to refer to the maximum benefit age as the full retirement age. The legislation reflects this viewpoint.
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Submit Your Tax Return
In addition, the deadline to submit your tax return is April 18th. Indeed, it may appear like you have plenty of time to file your tax return, but the deadline will sneak up on you. Get answers to your tax questions and file your return as soon as possible to avoid last-minute stress.
Whether you are a new Social Security recipient or have been receiving benefits for decades, knowing when your monthly payment will arrive is essential.
Your payment date is determined by your birthday and the day you began receiving benefits. These articles are updated monthly to reflect the precise dates that the Social Security Administration will release payments.
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