It is essential to know when to start planning for Social Security benefits. It helps to make better decisions. The age at which you claim can affect your monthly income for the rest of your life. Due to numerous updates taking effect in 2026, many people and families are uncertain about the best strategy. This article will guide you to the key changes, including how timing affects your benefits. You will also learn how Eric M. Hunt, CPA, can help you make better decisions.
Social Security is not just a government benefit. It is a core part of most retirement income plans. As we know, social security benefits in 2026 have changed slightly. Choosing when to claim requires careful review of your age, health, income needs, tax position, and other retirement assets.
Full Retirement Age Changes in 2026
Full Retirement Age (FRA) is the age at which you are entitled to receive your full Social Security benefit without any reduction. It is a critical milestone, yet many retirees mistakenly assume the FRA is still 66 or 67 for everyone. While the FRA has been gradually increasing for years, 2026 marks a significant point in that schedule.
Under the current Social Security guidelines:
- For everyone born in 1960 or later, the Full Retirement Age is now 67.
- The first group of people to reach this age under the modern schedule – those born in 1960 – will not get their FRA until 2027.
- Individuals born between 1961 and 1967 will reach their FRA in subsequent years, ranging from 2028 to 2034.
This distinction matters because claiming benefits before you reach your specific FRA leads to permanent reductions in your monthly payment. Because the FRA is shifting, many people approaching retirement now may need to wait longer than they initially expected to qualify for their 100% benefit amount. Verifying your exact FRA based on your birth year is the essential first step in any benefit planning strategy.
The Real Cost of Claiming Early
Individuals and families can start claiming Social Security benefits at age 62. However, claiming early may sound attractive, but it comes with a cost that lasts for the rest of one’s life.
If you claim at the age of 62, your monthly retirement benefit may be reduced by 30 per cent. The reduction in spousal benefits could reach 35 per cent. For example, if your Full Retirement Age benefit is $1,000/month, claiming early could result in a $300/month reduction in that payment. This difference can prove significant for a long retirement. It can amount to tens of thousands to hundreds of thousands of dollars.
It might be the right choice to claim early in situations where you need immediate income. For example, health concerns, urgent financial needs, or limited retirement savings. However, this decision should not be made without consideration. It should be taken carefully after reviewing your entire financial situation.
A CPA can help run projections that compare lifetime benefit outcomes across different claiming ages so that you can see the long-term impact clearly.
The Advantage of Delaying Benefits
On the other end of the spectrum, delaying benefits beyond Full Retirement Age can significantly increase your monthly payment. If you wait until age 70 to claim, your benefit can increase by as much as 24 percent compared to your FRA amount. That higher base payment continues for life and may also increase future cost-of-living adjustments.
Delaying is often beneficial for individuals who:
- Expect a longer lifespan
- Have other retirement income sources
- Want to maximize survivor benefits for a spouse
- Do not need immediate Social Security income
The break-even point for delaying varies from person to person. That is why personalized analysis is essential instead of relying on general rules of thumb.
Maximum Social Security Benefits in 2026
There is good news for high earners nearing retirement. The maximum Social Security benefit at Full Retirement Age, which was 4,018 dollars/month last year, will increase to 4,152 dollars/month in the new financial year.
This increase is due to salary growth and necessary changes made to the system. Although not everyone receives the maximum, this highlights how the benefit amount can change. Checking your earnings records and projected benefit statement is essential. This helps ensure that there are no errors and that the amounts shown are correct.
Claiming Trends Are Changing
Claiming behavior has shifted over the past decade. In 2014, about 39 percent of individuals claimed benefits at age 62. In recent years, that number has dropped to roughly 24 percent.
One primary reason is the growth of workplace retirement plans, such as 401(k) accounts. With more people having access to additional retirement savings, they have greater flexibility to delay Social Security and lock in larger monthly payments later.
This trend shows that more retirees are treating Social Security as a strategic asset rather than a quick source of income. Proper coordination between retirement accounts, tax strategy, and Social Security timing can produce better long-term results.
Tax Impact of Social Security Benefits
Many retirees are surprised to learn that Social Security benefits can be partially taxable depending on total income. Your combined income, including withdrawals from retirement accounts, investment income, and other earnings, determines how much of your benefit is subject to tax. Starting benefits at the wrong time can unnecessarily increase your tax burden.
Coordinating benefit timing with retirement withdrawals can reduce taxes and improve net income. This is where professional planning provides real value. A CPA can model different income scenarios and help structure withdrawals in a tax-aware way.
How Eric M Hunt CPA Helps with Social Security Planning
Decisions about Social Security should not be made alone. It should be a part of a broader retirement and tax strategy. At Eric M. Hunt, CPA, we help clients determine when and how to claim benefits based on their overall financial situation.
Clients receive support with:
- Comparing benefit amounts at different claiming ages
- Reviewing Full Retirement Age and eligibility details
- Coordinating Social Security with retirement account withdrawals
- Understanding the tax treatment of benefits
- Planning spousal and survivor benefit strategies
- Preparing and organizing required paperwork
Instead of relying on an online calculator or making guesses, clients get personalized advice. This advice is based on their income, expenses, and goals. It helps you avoid costly mistakes and builds confidence in your retirement planning.
Final Thoughts
Social Security rules continue to evolve, and the 2026 updates make timing decisions even more critical. Claiming early can permanently reduce your income, while delaying can significantly increase it. Full Retirement Age is shifting, maximum benefits are rising, and claiming trends are changing.
Before you file, it is wise to carefully review your options. A structured analysis can reveal opportunities to increase lifetime income and lower taxes. With professional guidance and proper planning, you can turn Social Security into a stronger and more reliable part of your retirement plan.
FAQ Section
1. What is the Full Retirement Age for Social Security now?
It depends on your birth year. For everyone born in 1960 or later, the Full Retirement Age (FRA) is 67. If you were born in 1960, you will reach your FRA in 2027.
2. How much do I lose if I claim at age 62?
If your Full Retirement Age is 67, claiming at age 62 results in a permanent 30% reduction in your monthly worker benefit. For spousal benefits, the payment is reduced to 32.5% of the worker’s primary amount (representing a 35% reduction of the maximum spousal benefit).
3. Is it always better to wait until age 70?
Not necessarily. While waiting until age 70 can increase your benefit by 24% over your FRA amount, the “best” time depends on your health, immediate income needs, and other retirement assets. A personalized break-even analysis is the most reliable way to make a decision.
4. Are Social Security benefits taxable?
Yes, they can be. Depending on your “combined income” (AGI + nontaxable interest + half of your Social Security benefits), you may pay federal income taxes on up to 85% of your benefits.
5. Can a CPA help me choose the right claiming age?
Absolutely. A CPA can run detailed projections, coordinate timing with your 401(k) or IRA withdrawals, and help you structure a plan that minimizes your tax burden while maximizing your lifetime income.
