Wealthy Couples Tap $1.8 Million 401(k)s at 63 to Lift Social Security to $5,100 by 70
Updated
Updated · 24/7 Wall St. · Aug 27
Wealthy Couples Tap $1.8 Million 401(k)s at 63 to Lift Social Security to $5,100 by 70
1 articles · Updated · 24/7 Wall St. · Aug 27
Summary
$110,000 annual 401(k) withdrawals from age 63 to 70 can let affluent couples delay claiming and raise combined Social Security from about $4,100 a month at 67 to roughly $5,100 at 70.
That bridge works because delayed credits add about 8% a year after full retirement age, producing a roughly 24% higher lifetime benefit, with future COLAs applied to the larger base.
In 2026, married couples can withdraw enough to stay within low tax brackets—after a $32,200 standard deduction, taxable income can remain under the 12% bracket's $100,800 ceiling.
Using 401(k)s earlier also shrinks required minimum distributions at 73, avoiding larger forced payouts, reducing the chance that up to 85% of Social Security becomes taxable, and limiting Medicare IRMAA surcharges.
For high-net-worth households, planners frame the tradeoff as accepting a smaller pretax nest egg at 70 in exchange for more inflation-linked lifetime income and a lighter tax burden later.