Retiring at 63 can create an income gap if you delay Social Security. One option is to use 401(k) withdrawals as a temporary bridge, which could allow you to claim a higher monthly benefit later. To determine whether this strategy might work for your retirement, you will need to figure out if the increase is worth drawing down savings sooner. Here’s how this plan can work in practice.
Using Your 401(k) to Delay Social Security
For someone born in 1960 or later, full retirement age is 67. According to the Social Security Administration, claiming retirement benefits at 63 provides 75% of the full retirement benefit, compared with 100% at 67. 1
The SSA estimated that the average monthly benefit for all retired workers was $2,071 in January 2026, after the 2.8% cost of living adjustment (COLA). 2 For this example, we’ll use that amount for both spouses, who retire at 63. Claiming at that age would give the couple roughly $3,106 per month combined ($2,071 × 75% × 2).
| Claiming Age | Percentage of Full Benefit | Combined Monthly Social Security Benefit | Four-Year 401(k) Bridge |
|---|---|---|---|
| 63 | 75% | $3,106 | $0 |
| 67 | 100% | $4,142 | $3,106 × 48 = $149,088 |
Taking 401(k) withdrawals to replace $3,106 in monthly Social Security income over four years would require $149,088 before taxes. Because both spouses are older than 59½, those withdrawals generally would not be subject to the additional 10% early-distribution tax. Pretax 401(k) withdrawals would still be taxed as ordinary income, which can raise their tax bill for the year.
Claiming at 63 preserves more of the 401(k), while waiting until 67 could provide an additional $1,036 in monthly Social Security benefits. This decision affects the amount withdrawn from savings in their early 60s and the size of future Social Security payments. The outcome can also depend on market downturns, changes in taxable income and how much of their expenses must be covered from retirement savings during those four years.
A financial advisor can help determine when to claim Social Security and how to fund years before benefits begin.
When the Bridge Pays Off: Break-Even Analysis
If the couple retires at 63 but waits until 67 to claim Social Security, they still need money to cover those four years. To do this, the couple could create a 401(k) bridge by taking withdrawals from their account until they claim the higher Social Security benefit.
Calculating the break-even point can help them estimate how long it would take for the higher benefit to make up for those withdrawals.
Continuing with the same example, they would need $149,088 from their 401(k) to replace four years of Social Security benefits. Waiting until 67 would increase their combined monthly benefit from $3,106 to $4,142, which is $1,036 more. The table shows the break-even point.
| Component | Calculation | Amount |
|---|---|---|
| Monthly benefit increase | $4,142 − $3,106 | $1,036 |
| Annual benefit increase | $1,036 × 12 months | $12,432/year |
| Break-even period | $149,088 ÷ $12,432 | 12 years |
| Break-even age | 67 + 12 years | 79 |
The higher Social Security benefit in this example makes up for the 401(k) withdrawals around age 79. Living beyond then could give the couple a higher monthly benefit after reaching the break-even point. Dying before that age, however, would mean the additional Social Security benefits do not equal the full amount withdrawn from the 401(k).
This simplified comparison that does not include investment returns, income taxes or future Social Security COLAs.
When Claiming Social Security First May Work Better
For a married couple, claiming Social Security at 63 may help preserve 401(k) savings and limit withdrawals. Taxes also matter because distributions are generally treated as ordinary income, while up to 85% of Social Security benefits may be taxable based on combined earnings and filing status.
Spouses do not necessarily need the same claiming strategy. The higher earner may delay Social Security to increase the potential survivor benefit, while the lower earner claims sooner to bring income into the household.
A financial advisor can help compare how claiming early and using a 401(k) bridge could affect retirement.
Photo credit: ©iStock.com/Iuliia Zavalishina, ©iStock.com/Goodboy Picture Company.
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