This week, a bipartisan group of senators launched a multifaceted initiative to assist citizens to make better judgments about whether to claim Social Security payments.
According to a letter and legislation released on Monday, Americans are confused about their options, and the Social Security Administration (SSA) needs to improve communication, including bringing back printed statements.
Claiming Social Security
The senators want to update the terminology used by the SSA to better express the benefits of deferring benefits.
For example, while 62 is presently referred to as the “early eligibility age,” senators want it altered to the “minimum benefit age.” The existing “full retirement age” of 66 to 67 would be modified to the “standard benefit age.” The “maximum benefit age” would be 70 years old.
If the legislation is passed, the revisions will be included in all educational and informational materials produced by the SSA.
Furthermore, the senators suggest that everyone with a Social Security number receive a Social Security statement in the mail on a monthly basis throughout their earnings history.
Paper statements would be issued regardless of whether a person has an online account, though opting out of paper statements would be feasible. The statements would detail how many benefits a person might receive between the ages of 62 and 70.
The Bipartisan Policy Center previously highlighted paper statements as one technique of encouraging Americans to claim at the appropriate age. Several studies have emphasized the importance of modifying the SSA’s benefit wording.
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Why Americans Claim Benefits Too Early?
According to a 2019 SSA release, age 62 remains the most prevalent age for Americans, with roughly 35% of men and 40% of women enrolling at that age.
Nevertheless, some of the reasons Individuals want to obtain money as soon as possible may have as much to do with the uncertain future of the program as they do with a lack of knowledge.
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