From Yahoo Finance: 2025-05-03 08:30:00

A man considers delaying Social Security past his full retirement age to increase his benefit. If you have $1 million in a 401(k) and collect a pension, delaying Social Security until age 70 can boost your benefit by up to 24%. However, this means relying more on savings, potentially depleting your nest egg. Financial advisors can help plan for a comfortable retirement.

Funding retirement requires matching income to expenses. Social Security, pensions, and retirement accounts are key income sources. Essential expenses include housing, food, and healthcare, with discretionary spending on transportation, entertainment, and travel. Delaying Social Security can increase benefits, but it also means depleting savings faster, necessitating careful consideration of all income sources and factors like taxes and inflation.

Deciding when to claim Social Security involves uncertainty about investment returns, inflation, and longevity. Delaying can lead to significantly higher benefits, but also carries risks like market fluctuations and outliving your savings. Financial advisors recommend delaying if expenses are low, debts are paid, and assets can cover expenses. It’s important to plan for potential scenarios to protect your financial future.

A woman reviews her 401(k) as she contemplates when to claim Social Security. Claiming later can significantly increase benefits, but requires considering how to cover expenses in the meantime. Delaying Social Security can pay off if you have substantial retirement savings and a pension. A financial advisor can help weigh the pros and cons of different options and create a plan for retirement.

To decide when to claim Social Security, estimate benefits at different ages using tools like SmartAsset’s Social Security calculator. Consider factors like spousal benefits, taxes, and unknowns such as inflation and market volatility. A financial advisor can assist in creating a retirement budget, projecting benefits, and making informed decisions. Keep an emergency fund for unexpected expenses and seek advice to protect your financial well-being.



Read more at Yahoo Finance: Should I Use My 401(k) and Pension First and Delay Social Security With $1 Million Saved?