It is for more than semantics that AMAC Action is supporting The Claiming Age Clarity Act introduced by Rep. Lloyd Smucker (R-PA). Currently The Social Security Administration refers to age 62 as “early retirement age” and age 67 as “full retirement age.” But that terminology fails to note that applying for benefits at 62 means a permanent, lifetime reduction of monthly payments as high as 30%. It also fails to note that waiting to apply until age 70 would yield an 8% yearly gain from age 67 to 70, a percentage difficult to achieve consistently with nearly any investment.
Smucker’s bill would rename age 62 as the “minimum benefit age,” the current full retirement age as the “standard benefit age,” and age 70 as the “maximum benefit age.” As AMAC Action noted in its letter of support, “These simple adjustments will more accurately reflect the program’s design and guide retirees toward better long-term financial decisions.”
Also, from the support letter is this: “Research shows that today’s seniors lose a combined $3.4 trillion in potential income due to early claiming. Clear, transparent terminology is a critical step toward solving this problem. As conservatives, we believe in personal responsibility, but that responsibility must be supported by honest information. Your bill enhances transparency, strengthens the long-term economic well-being of seniors, and does so without expanding the size or scope of government.”
