A group of senators have reintroduced bipartisan legislation that would change the Social Security Administration’s terminology to offer clarity for retirees deciding when to retire and require mailed statements be sent detailing their contributions.

One bill would change the Social Security Administration’s terminology from “early eligibility age,” “full retirement age” and “delayed retirement credits” to “minimum monthly benefit age,” “standard monthly benefit age” and “maximum monthly benefit age,” respectively, to “better reflect Social Security’s claiming design and how the program works,” according to an April 29 news release.

The bill was introduced by Senator Bill Cassidy, R-Louisiana, chairman of the Senate Committee on Health, Education, Labor and Pensions, and co-sponsored by Senators Susan Collins, R-Maine; Chris Coons, D-Delaware; and Tim Kaine, D-Virginia. According to the senators, the changed language would offer more clarity to retirees who receive maximum benefits if they wait until age 70 to claim their benefits.

“Americans have earned their benefits,” Cassidy said in a statement. “When planning for retirement, let’s make sure they have the best information available and receive what they deserve.”

A separate bill introduced by the same group of senators would require the SSA to mail earnings statements to help Americans plan for retirement. Under the proposal, individuals with Social Security accounts would see how much they paid into Social Security every five years between ages 25 and 54, every two years from 55 to 59, and annually at 60 and older.

Both bills have been referred to the Senate Committee on Finance, from which the legislation did not advance in the previous Congress.

Increase in Retirement, Survivor, Health Claims

Americans can claim Social Security benefits as early as age 62, but the benefits paid out will be larger for those who wait, with maximum benefits available to those who claim at age 70.

In 2023, about 23% of retirees claimed Social Security at age 62, while 59% of people aged 63 to 66 claimed benefits, and only 9% claimed at age 70 or later, according to data from the Social Security Administration.

Meanwhile, the number of pending Social Security claims for retirement, survivor and health insurance has dramatically increased this year.

In April, pending claims reached 614,158, according to the SSA’s April 25 up from 460,158 claims one year ago. April’s figure also outpaced the 580,887 claims made in March, resulting in an additional 250,000 applications for benefits compared with last year, according to the report.

“The way that it works is: Generally, the longer you wait, the more you can get,” says Romi Savova, the founder and CEO of PensionBee, a personal pension provider. “So the question is: Why are people tapping into Social Security? Is it because they need those funds?”

Social Security has long been a third-rail political issue and one of the few federal programs not likely to receive cuts as Congressional Republicans finalize their budget resolution. The Social Security Administration announced in March that it would need to cut at least 7,000 employees from the agency and close multiple regional offices to comply with executive orders from President Donald Trump.

In fact, Trump has floated the idea of ending taxes on Social Security, which would likely accelerate the depletion of the combined Social Security trust funds, which are currently forecast to run out and require benefit cuts by 2035.

A recent PensionBee study found that Americans could need an extra $100,000 in retirement savings to make up a shortfall in Social Security benefits, which are expected to fall 17% if the fund is depleted in 2035.

Raising the retirement age or reducing benefits are two potential, yet very unpopular, solutions to solve the funding conundrum, says Dennis Jansen, head of economics at Texas A&M University.

“Benefits are too high,” he says. “We promised more than we can pay.”