Many Americans look to the Social Security Administration for guidance long before they start receiving retirement benefits. This includes advice on the right time to claim those benefits and help if their Social Security number gets compromised.
This week, the House of Representatives approved several pieces of legislation aimed at enhancing the services provided by the agency. This is intended to help not just future retirees but also those affected by identity theft and families with lost or stolen cards. It’s worth noting that over 300 million people in the U.S. possess a Social Security number.
Next, these proposed changes await consideration in the Senate.
If these bills become law, several significant updates could occur.
Revised terminology for claiming Social Security
Currently, individuals can start claiming Social Security retirement benefits at age 62.
However, many financial experts suggest it’s often smarter to wait, as delaying claims can lead to larger monthly benefits. By choosing to claim at what’s known as full retirement age—generally between 66 and 67, depending on when you were born—beneficiaries can maximize their benefits to 100% of what they’ve earned.
Moreover, if claiming is postponed until age 70, benefits can increase by 8% for each year beyond full retirement age.
Despite these advantages, a notable number of Americans don’t wait. A 2022 study found that 10% of retirees still opt to claim at 62. Interestingly, data earlier this year indicated a rise in this trend: the Urban Research Institute reported that even higher-income individuals are filing for retirement as early as 62.
In light of this, a new bipartisan initiative called the age clarification law has been introduced by Rep. Lloyd Smucker (R-Pa.) and Rep. Don Beyer (D-Va.). This aims to redefine the retirement age terminology to better reflect these choices.
- The term “early eligibility age” will be revised to “minimum monthly benefit age” for those starting at 62.
- The phrase “full retirement age” will change to “standard benefit age.”
- The age of 70 will be labeled “upper age for monthly benefits.”
“People are making major life decisions that could impact their finances drastically, often without having all the necessary information,” noted Shai Akabas, deputy director for economic policy at the Bipartisan Policy Center, which is backing the bill.
In the Senate, this proposal is spearheaded by Sen. Bill Cassidy (R-La.) and has garnered support from various colleagues, including Sen. Chris Coons (D-Del.), Susan Collins (R-Maine), Tim Kaine (D-Va.), and Bernie Sanders (I-Vt.).
“The overwhelming support in the House sends a strong message, and we’re optimistic it will lead to quick action in the Senate soon,” Akabas added.
Enhancing support for identity theft victims
When someone’s Social Security number is either compromised or a card is misplaced, they often have to deal with numerous representatives from the Social Security Administration to sort it out.
A bill introduced by Representative David Kustoff (R-Tenn.) known as Improving Social Security Services for Victims of the Identity Theft Act aims to streamline this process by requiring the agencies to designate a single point of contact for consumers.
“Victims of identity theft shouldn’t have to wade through red tape to regain their personal information,” Kustoff stated.
According to reports from 2024, there were over 1.35 billion notifications sent out due to more than 3,100 data breaches, with over 1,800 of those involving Social Security numbers.
The Senate version of this bill, led by Sen. Chuck Grassley (R-Iowa), has already attracted nine bipartisan co-sponsors.
Children’s Social Security number protection
The third proposed bill, titled Social Security Child Protection Law, mandates that children under 14 must receive a new Social Security number if their original card is lost or stolen by mail.
“Every child’s Social Security number is meant to be permanent, yet many lose or have theirs stolen through the mail, creating a risk for identity theft,” stated Rep. Lloyd Smucker during a speech before the House vote on Dec. 1.
A 2022 study by Javelin Strategy and Research indicated that around 915,000 children fell victim to identity theft that year, costing families an average of $1,128 and taking roughly 16 hours to resolve.
Smucker mentioned that it can sometimes take years for children to become aware that their Social Security numbers have been compromised. Currently, the Social Security Administration only replaces numbers if fraud is detected.
This new bill aims to provide straightforward solutions to safeguard our children.
