U.S. retirees advised to delay Social Security, plan 401(k) withdrawals

Delaying Social Security benefits until age 70 adds an 8% annual credit, resulting in a roughly 24% increase in monthly payments. For a typical beneficiary, this boost can be equivalent to adding about $144,000 to a 401(k) balance.

Retirees with 401(k) accounts face mandatory minimum distributions (RMDs) beginning at age 73 or 75, which can raise taxes, affect Social Security taxation, and increase Medicare premiums. Experts recommend considering Roth IRA conversions before RMDs start, as Roth accounts have no required withdrawals and offer tax‑free growth. Strategic early withdrawals during low‑income years can also help lower future tax burdens.