One of the most important decisions retirees make — when to file for Social Security benefits — would be outlined differently under a bill that could soon become law.
The Claiming Age Clarity Act, a bipartisan bill that changes some language to describe the ages at which a worker is eligible for Social Security retirement benefits, passed the Senate on Tuesday.
The bill is now on its way to President Donald Trump for his signature. The White House did not respond to CNBC.com’s request for comment on whether and when he might sign.
Applying for Social Security benefits at age 62 – when eligible retirees first become eligible – can permanently reduce benefits by up to 30% compared to applying at full retirement age. By waiting until age 67, people born in 1960 or later can receive 100% of the benefits they earned. And for each year delayed beyond this “full” retirement age, up to age 70, potential beneficiaries receive an 8% increase in their benefits.
The Claiming Age Clarity Act calls for modernizing terminology related to age claims to help retirees better understand the trade-offs of their decisions. This does not change the claiming age itself or how benefits are paid.
“This simple legislation aims to simplify bureaucratic jargon that could mislead Americans into making poor financial decisions,” Rep. Lloyd Smucker, R-Pa., said in a statement when he introduced the bill with Rep. Don Beyer, D-Va., in 2025.
The new terms use “minimum”, “standard” and “maximum”.
Under the bill, age 62 would be described as the “minimum benefit age” rather than the term the Social Security Administration currently uses, “early eligibility age.”
For ages 66 and 67, when a person receives 100 percent of their earned benefits based on their birth year, the agency would use the “standard benefit age” rather than the “current full retirement age.”
And for age 70, the Social Security Administration would describe it as the “maximum benefits age” rather than the current “delayed retirement age.”
Social security financing challenges remain on the agenda
The Senate’s passage of the bill is “great news for Americans making decisions about their Social Security benefits,” Sen. Bill Cassidy, R-La., who proposed the Senate version of the bill in 2025, said on
Social Security funding problems are one of the reasons often cited for applying for benefits early. Still, experts generally say it’s often in retirees’ best interests to delay filing for as long as possible, until age 70.
“Changing the name is a good step, an important step, but there is still work to do,” said Shai Akabas, vice president for economic policy at the Bipartisan Policy Center. The think tank’s Washington-based affiliate, BPC Action, supported the bill.
The idea for the language changes started about 10 years ago, according to Akabas. Other efforts to strengthen communication around Social Security retirement benefits are being considered, including increasing the frequency of mailed benefit statements, he said.
The Congressional Budget Office has not evaluated the Claiming Age Clarity Act for its costs. In the long term, this change is not expected to significantly affect the program’s finances, Akabas said. In the short term, that could actually save the program money, because it might cause people to apply for benefits later than they otherwise would, he said.
Ultimately, broader Social Security reform, addressing the program’s funding issues, will require bipartisan compromise. Passage of the Claiming Age Clarity Act, while a minor change, marks an opening for lawmakers on both sides of the aisle to continue talking about the program, Akabas said.
AARP also approved the Claiming Age Clarity Act. A study by the nonprofit organization, which represents Americans ages 50 and older, found that while people know that deferring Social Security increases their retirement benefits, they may not be sure of the exact age to maximize their benefits.
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