Deciding when to begin collecting Social Security retirement benefits is one of the most important financial decisions many people make as they approach retirement. At Duncan Legal, PC, we often remind clients that this decision is about far more than a monthly check. It plays a critical role in your long-term financial security, your estate plan, and your overall peace of mind.
While some individuals claim benefits as soon as they become eligible, others delay as long as possible to increase their monthly payment. There is no one-size-fits-all answer. However, understanding how Social Security works and how it fits into your broader estate planning strategy can help you make a confident, informed decision that aligns with your goals.
Many estate planning professionals, including the team at Duncan Legal, PC, encourage individuals who can afford to wait to consider delaying their benefits. With people living longer, one of the greatest risks retirees face is not running out of money early in retirement, but outliving their savings later. Social Security can provide a stable, guaranteed source of income in those later years, especially when coordinated properly with your estate plan.
Understanding Full Retirement Age
One of the most important milestones to understand when planning for retirement is your full retirement age. This is the age at which you are entitled to receive 100 percent of your Social Security retirement benefit.
Your full retirement age depends on your year of birth:
- If you were born in 1937 or earlier, your full retirement age is 65
- For those born between 1938 and 1959, full retirement age gradually increases
- For anyone born in 1960 or later, full retirement age is 67
Knowing your full retirement age is essential when planning with Duncan Legal, PC, as it affects not only your monthly benefit amount but also how Social Security fits into your overall retirement and estate planning goals.
Taking Benefits Early
You may begin collecting Social Security retirement benefits as early as age 62. However, starting early results in a permanent reduction to your monthly benefit.
If your full retirement age is 67, your benefit is reduced by approximately:
- 30 percent if you start at age 62
- 25 percent if you start at age 63
- 20 percent if you start at age 64
- 13.3 percent if you start at age 65
- 6.7 percent if you start at age 66
These reductions last for the rest of your life, even after you reach full retirement age. While early claiming may make sense in certain situations, such as health concerns or immediate financial needs, Duncan Legal, PC encourages individuals to fully understand the long-term impact before making this decision.
Why Timing Matters
The decision of when to take Social Security should be based on more than just age. At Duncan Legal, PC, we help clients evaluate several important factors, including:
- Your current income needs
- Your health and family longevity
- Whether you plan to continue working
- Other retirement savings and income sources
Because Social Security is designed to provide guaranteed income for life, the timing of when you claim benefits can significantly affect your long-term financial stability and your ability to protect loved ones through thoughtful estate planning.
Planning Ahead With Duncan Legal, PC
Choosing when to take Social Security benefits should be part of a broader retirement and estate planning conversation. Coordinating your Social Security decisions with retirement accounts, assets, beneficiary designations, and long-term goals can help create a more predictable and secure future.
At Duncan Legal, PC, we believe proactive planning allows you to move forward with confidence, knowing your wishes are documented and your loved ones are protected.
In a future post, we will explore what happens when you delay taking benefits past full retirement age, including how delayed retirement credits work and how to evaluate your personal break-even point.
Plan Ahead With Duncan Legal, PC
Your Social Security decisions today can have lasting effects on your financial future and your estate. If you would like help reviewing how Social Security fits into your overall estate plan, Duncan Legal, PC is here to support you.
Visit Us: 6436 S Racine Cir, Ste 227, Centennial, CO 80111
Call: (720) 506-2536
Learn More: www.duncanlegal.com
Take the time now to protect your family’s financial future and peace of mind. With thoughtful planning from Duncan Legal, PC, you can move into retirement with clarity, confidence, and comfort.
