With $1 Million Saved and a Pension: Evaluating 401(k) Withdrawal and Social Security Delay
Sunday, 25 August 2024, 11:00
Evaluating Your Options: 401(k) and Social Security
With $1 Million saved and a pension, many retirees find themselves at a critical juncture. Should they tap into their 401(k) early or delay their Social Security benefits? These decisions can dramatically influence financial stability and retirement enjoyment.
The Benefits of Tapping Your 401(k)
- Access to immediate funds for living expenses
- Potential for tax advantages if taken strategically
- Opportunity to reinvest in more aggressive growth options
Delaying Social Security: Pros and Cons
By postponing Social Security, retirees can earn delayed retirement credits, enhancing their monthly payout. This strategy might suit those with a longer life expectancy and a desire for greater long-term income.
Tips for Strategic Planning
- Consider your life expectancy and health status.
- Evaluate your monthly budget and living expenses.
- Consult with a financial advisor for tailored strategies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.