Retirement Social Security

Social Security's 'Full Retirement Age' May Get a New Name Under New Bill - Here's Why

A new bill seeks to change some Social Security program terms.

By Paige Cerulli , Edited by Laura Hohenstein

Updated Oct. 8, 2026

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A bill that might soon become law might change the terms used to describe when retirees claim Social Security senior benefits. The bipartisan Claiming Age Clarity Act seeks to change certain terms that the Social Security Administration (SSA) uses to describe the ages when workers may choose to claim their benefits. In doing so, the bill might help clear up some confusion and modernize the terminology.

Here's what you should know about the bill, its current status, and the changes it might bring if it's signed into law.

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The terms people stumble over the most

The SSA describes several rules about when individuals can claim Social Security benefits and how much of those benefits they receive at their particular age. The terminology surrounding these rules may be confusing, and people often struggle with "early eligibility age," "full retirement age," and "delayed retirement age" terms. Deciding when to claim benefits may have long-lasting financial implications, so individuals who don't fully understand the language around these decisions might make expensive mistakes.

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How many people don't understand Social Security

The Nationwide Retirement Institute's 2025 Social Security Survey of 1,812 U.S. adults receiving or expecting to receive Social Security demonstrated just how significant that knowledge gap may be. Just 21% of survey respondents were able to correctly identify the age when they qualified for full Social Security benefits, while 38% stated that they didn't know their full retirement age.

Despite the lack of knowledge around the full retirement age, 74% of respondents indicated that they felt confident claiming and managing benefits without a financial professional's help.

What the Claiming Age Clarity Act proposes

The Claiming Age Clarity Act proposes modernizing the terms used around claiming ages to help retirees and near-retirees better understand their claiming decisions. It doesn't change how benefits work or alter the claiming ages, but is instead intended to help individuals better understand the program and make well-informed claiming decisions.

Representatives Lloyd Smucker and Don Beyer introduced the bill in 2025. "This straightforward legislation aims to simplify bureaucratic jargon which may mislead Americans into making poor financial decisions," said Smucker.

The bill proposes using several new terms to replace some of the more commonly misunderstood language around claiming benefits.

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Minimum monthly benefit age

Rather than the term "early eligibility age," the bill proposes using the term "minimum monthly benefit age."

Currently, individuals are able to start claiming Social Security at age 62; that's currently called the early eligibility age. If individuals claim benefits early, their benefit amount is permanently reduced by a percentage to make up for the fact that they're collecting the benefits for more months. If an individual claims benefits as early as possible, their benefits are reduced by as much as 30%.

Claiming early might make sense for an individual who isn't expected to live for many years in retirement, but it might not make financial sense for someone who's expecting to live for several decades.

Standard monthly benefit age

The bill seeks to replace the "full retirement age" term with "standard monthly benefit age." The term refers to the age when individuals receive 100% of their earned benefits. Depending on their birth year, that may be at age 66 or 67.

Maximum monthly benefit age

Instead of the current term, "delayed retirement age," the SSA would adopt the use of "maximum monthly benefit age." Just as individuals have the option to collect benefits early, they also have the option to delay collecting benefits.

If an individual delays collecting benefits past their full retirement age, their benefits are increased by a percentage for each month they're delayed. The increase stops once the individual reaches age 70.

Delaying benefits may mean an individual receives a larger monthly check, and it may pay off financially for individuals who are healthy and expected to enjoy long retirements.

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Responses to the Claiming Age Clarity Act

AARP has endorsed the Claiming Age Clarity Act. AARP research suggests that although people understand that postponing their benefits increases their checks amounts, they may not know how to determine the right age when they should start collecting benefits.

As the Social Security program faces the approaching insolvency of the Old-Age and Survivors Insurance (OASI) trust fund, the bill offers another appealing benefit: It might reduce costs for Social Security as people realize the perks of claiming benefits later than they otherwise would have.

The Senate voted to pass the Claiming Age Clarity Act last week, and the bill is headed to President Trump to be signed. If signed, it becomes law, and the changes may be enacted.

Bottom line

The bill doesn't change any of the math surrounding when you may collect Social Security benefits, and it only changes the wording. The real decision of when to start collecting benefits is a personal one and it depends on factors like your health, income, and retirement timeline.

If you're uncertain about when to collect benefits, consider speaking with a financial advisor or financial planner. A financial expert may review your retirement plan, your budget and current savings, and your financial goals to help you make the best decision that keeps you on track for retirement.

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