Social Security updates for young and old pass U.S. House

By Christina Lengyel
The Center Square

Social security beneficiaries both young and old got a legislative boost in Congress this week, thanks to one Republican from Pennsylvania.

U.S. Rep. Lloyd Smucker, who represents the state’s 11th congressional district spanning Lancaster County and parts of York, sponsored two pieces of legislation he says will strengthen the system.

“Helping protect children from identity fraud and assisting seniors in receiving the benefits they rightfully deserve is something all of Washington should agree with, and I am thankful that my House colleagues supported these straightforward solutions,” he said Tuesday in a news release.

The Claiming Age Clarity Act, H.R. 5284 changes the wording used by the Social Security Administration to inform seniors about their options. Specifically, it seeks to resolve confusion about who is eligible to receive benefits when.

The bill would change the phrase “early eligibility age” to “minimum benefit age,” helping people to understand that they’re able to begin drawing from the funds at 62. Full benefits become available at age 66 or 67 depending on birth year. The bill changes the term for that time from “full retirement age” to “standard benefit age.” Finally, the latest one can begin receiving their benefits, age 70, would change from “delayed retirement age” to “maximum benefit age.”

“Unfortunately, under current practice, many Americans could end up forgoing some of those resources if they are unable to decipher the Social Security Administration’s misleading or confusing terminology when it comes to deciding when to begin claiming benefits,” said Ways and Means Committee Chairman Jason Smith, a Republican representing Missouri’s 8th district. “Thanks to the leadership of Congressman Smucker, Congress is advancing a solution that will bring needed simplicity to the language used by the Social Security Administration and help ease the stress of retirement planning.”

The updated language reveals a shifting reality for many Americans. Just as “retirement” is removed from the text, so have many Americans found themselves working longer, either opting out of or unable to take traditional retirements. More than half a million Americans over the age of 80 continue to work, per the U.S. Census Bureau.

According to the National Council on Aging, 45% of older adult households do not have the income they need to cover basic costs. A total of 80% are “unable to weather a major shock such as widowhood, serious illness, or the need for long-term care.” What’s more, those in the bottom 20% of wealth lost nine years of life compared to their wealthier counterparts, with the bottom 60% having double the mortality rate of the top 20%.

“Millions of older Americans who worked hard and played by the rules are dying early simply because they don’t have sufficient financial resources,” said National Council on Aging President Ramsey Alwin.

But there’s trouble at the other end of the spectrum, too, albeit different.

The second bill passed would assist young Americans whose identities may be subject to fraud before they’re ever old enough to begin to contribute to the system. H.R. 5348 requires the Social Security Administration to provide children under 14 with a new number if their cards are lost or stolen. Current policy does not allow new numbers to be issued unless fraud has already occurred.

“Every year, there are kids whose social security numbers are lost or stolen in the mail and exposed to fraudsters,” said Smucker. “Now because children don’t open bank accounts, they don’t apply for lines of credit, they don’t seek employment, it can take them years to discover that their identity was stolen or to realize the effects of a stolen identity.”