Many people in the U.S. are nearing retirement with 401(k) accounts that are too small. If you’re one of them, you may want to add as much extra money as you can to your plan, but it can be hard to make a meaningful impact on your balance when you’re in your 60s already.
The good news is, you can make a Social Security move that’s roughly the equivalent of adding $144,000 to your 401(k) — and you can do it right when you reach your retirement age. Here’s what you need to do.
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This Social Security choice is worth an extra $144,000 in your retirement plan
The Social Security choice that you need to make is very straightforward. You need to wait beyond your full retirement age and claim benefits at 70 instead.
Say, for example, you were born in 1960 or later, and your FRA is 67. If you were on track for a standard benefit of around $2,000 (pretty close to the average for 2026), you could increase your benefit by 8% per year if you waited until 70 to claim it. That’s thanks to delayed retirement credits worth 2/3 of 1% per month.
In this case, a 24% benefit bump is worth $480 per month, or $5,760 per year.
To generate that much money with a 401(k), assuming you follow the 4% rule, you would need to put an extra $144,000 into your retirement plan.
Waiting an extra three years to claim Social Security can pay off
Delaying a Social Security claim until 70 can clearly have a pretty big impact on your monthly benefit. Studies have also shown that it gives you the best chance of maxing out your lifetime benefits.
That’s because the system of early-filing penalties and delayed retirement credits was put in place to equalize benefits for early and late claimants, but life expectancies have increased since it was created.
Of course, you’ll either need to work until 70 to pull off this plan or have enough money in your retirement accounts to support you until you claim benefits at 70. Investing as much as you can in your IRA, 401(k), and other retirement accounts during your working life can make that possible.
Putting off the time until you retire can also give you more time to save and invest, and it means you’ll have to rely on your savings for fewer years. You can have a much more secure retirement for all of these reasons.
So, if you want the equivalent of a $144,000 401(k) boost, you should seriously consider putting off your claim. When you have more financial security in your later years, you’ll be glad you did.
