Unsure when to claim full Social Security benefits? A new bill in Congress could make it clearer — here’s what to know

Almost 58 million Americans age 65 and older receive benefits from Social Security. (1) And with data from Vanguard putting the median 401(k) balance hovering around $95,000, Social Security is the main source of income for millions of older Americans. (2)

That’s why understanding exactly when you qualify for your full benefit is crucial. Yet, most people don’t.

A recent Nationwide survey found that only 21% of Americans could correctly identify their full retirement age (FRA) — the age when you can receive your entire Social Security benefit without a reduction. (3) You can start collecting benefits as early as 62, but you’ll get less money each month, a permanent cut that lasts for life. Waiting until FRA (between 66 and 67 depending on your birth year) means you’ll get your full benefit, and waiting until 70 gets you the maximum amount possible.

According to the Social Security Administration, about one-third of retirees claim benefits early, which can reduce their payments by up to 30%. (4)

Now, Congress is considering a change that could make this confusing system easier to understand. Here’s why this matters to you.

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Lawmakers want to simplify language around Social Security

Many Americans are confused about what “full retirement age” really means, and lawmakers want to fix that.

Earlier this month, the House Ways and Means Committee advanced the Claiming Age Clarity Act, a bipartisan bill aimed at simplifying the language Social Security uses when describing benefit ages. It passed by a 41-1 vote and now moves to the full House for consideration. A similar version has been introduced in the Senate. (5)

If passed, the bill would change the terminology that the Social Security Administration uses:

• Age 62: Currently called “early eligibility age” — would become “minimum benefit age,” clearly signaling that payments will be reduced if you file early.

• Ages 66 to 67: Currently called “full retirement age” — would become “standard benefit age,” the point at which you qualify for your full benefit amount.

• Age 70: Currently called “delayed retirement age” — would become “maximum benefit age,” emphasizing that this is when benefits stop increasing.

“There’s evidence that it would have real effects on claiming behavior, and that will have real effects on folks’ financial security throughout retirement for the rest of their lives after they claim,” said Emerson Sprick, director of retirement and labor policy at the Bipartisan Policy Center.

The Claiming Age Clarity Act still has a few steps to go before becoming law. It was introduced in September 2025 and could be brought to a House vote later this year, though no date has been set. The proposal has broad bipartisan support, and many experts believe the Social Security Administration could adopt some of the simpler wording changes even without formal legislation.

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How to find out your FRA — and why it matters

Your FRA depends on the year you were born. Here’s how it breaks down: (6)

• Born 1943 to 1954: FRA = 66

• Born 1955: FRA = 66 and 2 months

• Born 1956: FRA = 66 and 4 months

• Born 1957: FRA = 66 and 6 months

• Born 1958: FRA = 66 and 8 months

• Born 1959: FRA = 66 and 10 months

• Born 1960 or later: FRA = 67

For example, if you were born in any year after 1959, your FRA is 67. So if you file for Social Security at 62, you’ll face a 30% reduction to your monthly benefits for life. If you wait until 70, your benefit increases by 8% for every year you delay after FRA, up to a 24% boost.

That’s a difference of $1,080 a month, or nearly $13,000 a year, between the lowest and highest possible benefit.

If you’re unsure of your FRA, you can check it through your My Social Security account on SSA.gov, which also shows your projected monthly payments based on different filing ages.

Financial planners often recommend using this tool and consulting a professional to determine when claiming benefits makes the most sense for your situation, especially since your decision affects your income for life.

Congress isn’t trying to change when you can claim Social Security — just the words used to describe those ages. But the proposed updates could make a big difference for millions of Americans who struggle to understand when and how to claim.

Knowing your “standard benefit age” and how much you stand to lose by filing early could mean thousands of dollars more in your pocket each year.

With the Claiming Age Clarity Act making its way through Congress, Social Security may soon become a little easier to navigate. Until then, understanding your FRA and planning around it remains one of the smartest financial moves you can make for retirement.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Social Security Administration (1, 4, (6); Vanguard (2); Nationwide (3); Congress.gov (5)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.