401(k), Social Security, or pension? The order you choose can mean financial health or disaster. Get it right in 2026

For astir people, Social Security is the linchpin of their retirement. According to a 2024 survey by The Senior Citizens League, benefits from the government-run programme relationship for much than fractional of full income for 67% of seniors. (1)

However, if you’re portion of the one-third of seniors with sizable income sources beyond Social Security — possibly a 401(k) program oregon a accepted firm pension — your biggest situation successful status is going to beryllium however to minimize your taxation burden.

Without a robust plan, you hazard overpaying taxes connected each your assorted income sources and could adjacent boost the hazard of outliving your fortune.

To mitigate this risk, clarify your apical status priorities and make a program to pat into assorted sources sequentially to minimize the costs.

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Before you series your income sources, it’s important to afloat clarify what your priorities successful status are.

For instance, 20% of retirees said creating an inheritance oregon fiscal bequest was a apical priority, according to a 2023 study by the TransAmerica Center for Retirement Studies. (2) If that is your precedence arsenic well, you request to series your income from assorted sources successful a mode that maximizes the size of your savings for arsenic agelong arsenic possible. That could mean little income upfront.

On the different hand, immoderate retirees privation to maximize income and manner expenses portion they’re inactive young and healthy. Your precocious 50s and aboriginal 60s could beryllium your alleged “go-go years” wherever you tin bask traveling and indulging successful hobbies that request a definite level of fitness.

Retirees surveyed by TransAmerica were much disquieted astir their declining wellness that requires semipermanent attraction (35%) than outliving their savings and investments (32%).

If this is your apical priority, you whitethorn request to series your income successful a mode that gives you much currency upfront, portion besides managing little taxation liabilities.

Once you’ve firmly established your priorities, you tin enactment with a fiscal advisor to make a broad strategy for claiming status income from antithetic sources.

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If your status program includes income not lone from Social Security but besides tax-advantaged accounts similar accepted IRAs and 401(k) plans arsenic good arsenic a defined payment pension, you’re successful a unsocial position.