I’m 65 and Have $150,000 in Liquid Assets, Should I Burn Through It Now To Claim Social Security at 70?

If I were 65 with $150,000 in liquid assets, I'd be tempted by a simple idea: spend some of that money now, delay Social Security, and lock in a bigger monthly check later. A recent Reddit poster faced almost exactly that choice, asking whether it made sense to use roughly $100,000 while waiting until 70. For anyone building a retirement plan, it's a question worth taking seriously because the decision affects both today's flexibility and tomorrow's income.

I wouldn't start by asking how quickly I could spend the money. Instead, I'd ask what those savings need to accomplish over the next five years, what other income I have coming in, and how much cash I'd still want available afterward. The math gets more interesting once I stop thinking about the account balance by itself.

Here's what you need to know.

I'd treat the savings as a bridge, not money to burn

Retirement planners sometimes call this a Social Security bridge: You deliberately use savings to cover part of your expenses while postponing your Social Security claim. A Bipartisan Policy Center analysis describes the strategy as drawing down retirement savings between retirement and claiming Social Security in exchange for a larger, inflation-protected lifetime benefit later.

If I used it, I wouldn't view the goal as draining my account. I'd set a yearly bridge amount and keep a separate emergency reserve so an unexpected home repair, car expense, or health care bill doesn't force me into a bad decision.

$150,000 only works if my spending says it does

On paper, $150,000 spread evenly over five years equals $30,000 a year, or $2,500 a month, before considering interest, investment returns, or taxes. But that number means little without knowing what my pension, part-time earnings, or other income would cover.

That's exactly why the Reddit example is hard to answer with a simple yes or no. The poster also mentioned having a teacher's pension, no debt, and low housing costs. I'd calculate my actual annual shortfall first, then decide whether the bridge leaves enough liquid money behind to feel secure at 70.

Waiting past full retirement age can pay me more

For someone born in 1960 or later, the Social Security full retirement age is currently 67. After that point, delayed retirement credits increase retirement benefits by 8% per year until age 70. So that means someone with a full retirement age of 67 can receive 124% of their full benefit by waiting until 70.

That 8% isn't an investment return on my savings, but instead it's a permanent increase in the monthly benefit, and Social Security benefits also receive annual cost-of-living adjustments (COLAs) based on current inflation. Few low-risk assets can reproduce that same combination of lifetime income and inflation protection.

I'd pay close attention to my break-even age

The trade-off is straightforward: By waiting, I give up several years of checks in exchange for larger checks later. AARP estimates that, in one example comparing claims at 62 and 70, the break-even point arrives around age 80, though the exact age depends on benefit amounts, taxes, investment returns, and claiming ages.

If I expect a shorter retirement because of health or family longevity, taking benefits earlier could be reasonable; if I expect to live well into my 80s or 90s, waiting becomes more attractive. I'd run my own estimates using Social Security's benefit calculators instead of assuming age 70 automatically wins.

Marriage, taxes, and Medicare can change the answer

If I were married and the higher earner, delaying could have value beyond my own lifetime because Social Security says a surviving spouse's benefit can reflect the deceased worker's delayed retirement credits. I'd also look carefully at where my bridge money comes from: Traditional IRA withdrawals are generally taxable, while qualified Roth IRA distributions generally aren't.

Bigger taxable withdrawals can have another consequence because Medicare uses modified adjusted gross income from two years earlier to determine whether someone owes an extra income-related monthly adjustment amount (IRMAA) on Part B and Part D. So I wouldn't decide how much to withdraw without considering both my tax bracket and potential future Medicare premiums.

Bottom line

If I were 65 with $150,000 available, I wouldn't "burn through" it simply to reach age 70. I'd consider using part of it as a planned Social Security bridge only after confirming that my pension and other income cover enough of my spending, that I'm comfortable with the likely break-even age, and that I can preserve a meaningful emergency cushion.

The question I'd ask myself is this: Will a larger guaranteed monthly benefit later make me feel more secure than having more liquid savings available today? There may also be a tax-planning opportunity during lower-income bridge years, such as carefully timed Roth conversions before required minimum distributions generally begin at age 73. Protecting both future income and present-day flexibility is a stronger sign of financial fitness than maximizing either one by itself.

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