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After passing the House last December, the Senate has now unanimously passed the Claiming Age Clarity Act (1). The bill officially changes the way the Social Security Administration labels the three key ages for benefit claims: age 62 — currently the “early eligibility age” — becomes the “minimum monthly benefit age.” “Full retirement age” (67 for anyone born in 1960 or later) becomes the “standard monthly benefit age,” and age 70 becomes the “maximum monthly benefit age.”
The legislation doesn’t change when Americans can claim Social Security or how much they’re entitled to receive. Instead, its purpose is to make it easier to understand the financial consequences of claiming at different ages.
Under the current system, terms like “early eligibility” and “full retirement age” don’t necessarily communicate how much money retirees could gain or lose depending on when they start collecting benefits. The proposed labels put the focus squarely on monthly payments, making it clearer that claiming earlier generally means accepting a smaller check.
On paper, this legislation seems like a minor tweak to official language, but the impact could be far greater. Here’s a closer look at how this subtle shift in labels could have thousands of dollars of consequences for millions of Americans.
How new labels could increase Social Security benefits
The change seems to be rooted in what economists call ‘nudge theory.’ (2) A 2023 study published in the Journal of Pension Economics & Finance (3) found that simply switching to these new labels improved people’s understanding of the Social Security program and pushed their claim date by an average of two and a half months.
A two-and-a-half month delay might not sound like much, but could result in monthly payments increasing just under 2%, per SSA (4). Over a 30-year retirement, that 2% additional monthly payment could be worth thousands of dollars.
In other words, people were better informed about the trade-offs and rewards of their claim timing simply because the new labels were more clear.
This knowledge gap was also uncovered in a 2025 Allianz Life survey (5) that found 55% of respondents said they didn’t know much about the Social Security program or how it would fit into their overall retirement plan.
“Changing the way the Social Security ages are described is a good first step in improving retirement signals so that workers can make better informed retirement decisions,” says a report by the Committee for a Responsible Federal Budget.
The good news is that you don’t need to wait for the labels to officially change to incorporate this idea into your own retirement plan.
Maximizing your own benefits
The signal from lawmakers and economists is clear: when it comes to Social Security, timing your claim is essential. Every month you delay claiming, up to age 70, can increase your monthly benefit.
With that in mind, the first step is to run the numbers and figure out how long you can realistically delay your claim. A professional accountant or tax planner could help you create a plan that optimizes your claim timing.
Advisor.com can help connect you with an expert near you for free.
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If you’re worried about covering expenses between your retirement and delayed benefit claim, a short-term Home Equity Line of Credit (HELOC) could serve as a financial bridge. A HELOC is a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed — similar to a credit card.
AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.
It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan up-front. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.
Like any other form of debt, a HELOC comes with its own set of unique risks that you must consider. Again, a professional planner or advisor can help you incorporate this temporary debt into your long-term retirement plan for the best outcomes.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Congress.gov (1); The Decision Lab (2); Cambridge University Press (3); Social Security Administration (4); Allianz Life (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
