--- title: What to Do With Social Security If You Have $1 Million Saved description: When timing Social Security, consider how much you have saved for retirement. Here's how to think about a $1 million nest egg. authors: - name: Marc Guberti url: https://money.com/author/marc-guberti/ bio: Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. at_money_since: 2024 articles: 446 covers: - Retirement - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Shopping - Taxes published: '2026-10-25T13:00:44.000Z' section: Retirement word_count: 516 canonical: https://money.com/social-security-with-1-million-saved/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Social security card with U.S. dollar bills](https://img.money.com/2026/10/Explainer-Social-Security-1M.jpg) While the claiming time that’s best will vary from one person to the next, the amount you have saved for retirement in your 401(k), individual retirement accounts (IRAs) and other accounts impacts when you should claim Social Security. Retirees with at least $1 million saved likely have more financial flexibility when it comes to claiming Social Security than someone with less saved. They have more time to wait until they turn 70 so they can collect the maximum benefit — though waiting is not necessarily the right decision for everyone. Here’s how you can assess when to claim benefits if you have a large nest egg. ## What $1 million in savings produces If you use the 4% withdrawal rule, a $1 million nest egg can safely provide $40,000 per year. Though again, each person’s situaiton is unique, and other factors such as how much you have in savings and investment accounts may necessitate a lower withdrawal rate. Using the above figure, $40,000 per year comes to $3,333 per month. The average monthly benefit for a retired worker was $2,088.79 per month as of September. Combining those income sources produces $5,421.79 per month, which can help give you an idea of how much a $1 million nest egg offers you in retirement. ## Use savings as the bridge Some people in this financial situation withdraw more money from their nest egg to delay access to their Social Security benefits. Each year you wait, your benefits go up, especially after full retirement age. Each year past full retirement age adds 8% to your benefit, inflation-adjusted, for life. Once you take out Social Security, you only get annual cost-of-living adjustment (COLA) increases. Delaying Social Security offers the best opportunity to boost your government checks. Some people take out Social Security early because it’s the only way they can make ends meet. A $1 million portfolio offers more flexibility, making it more feasible for people to wait until they turn 70 to claim their benefits. ## Taxes and Medicare costs Although a $1 million nest egg lets you delay access to Social Security, there are some financial consequences if most of your withdrawals come from a traditional retirement plan. The withdrawals from these plans are treated as ordinary income, which can push your income past Medicare’s surcharge threshold. Once your annual income exceeds $109,000 as a single taxpayer or $218,000 as a married couple filing jointly, Medicare premiums start to get more expensive. Plus, up to 85% of your Social Security benefits may be taxable. ## The calculation for spouses Marriage adds another layer of financial strategy with claiming Social Security. If the higher earner waits a little longer to claim benefits, it will raise the survivor benefit, in the event that the lower-earning spouse is the survivor. Because of that, higher earners may want to wait as long as possible, ideally until they turn 70, to claim Social Security. Mapping out your withdrawals each year leading up to your 70th birthday can help you determine the best course of action. 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