3 Things Rich Retirees Do Differently With Their Social Security Benefits

By Maurie Backman – Apr 4, 2026 at 9:18AM ESTKey PointsMany retirees need their Social Security to cover their basic expenses.Wealthy retirees can delay their claims for larger checks and invest the money.They can also treat Social Security as extra money and use their benefits to indulge.Millions of older Americans today collect monthly benefits from Social Security. And for many retirees, those benefits are a true lifeline, spelling the difference between covering essential bills or not. But there are some Social Security recipients who are wealthy enough that they technically don't need the money. For them, those benefits are like a bonus. And that gives them far more options. Image source: Getty Images. Here are three things rich retirees are able to do differently with their Social Security. 1. Delay their claims for more money The earliest age to claim Social Security is 62. And you're eligible for your benefits without a reduction at full retirement age, which is 67 for anyone born in 1960 or later. If you're willing to wait beyond full retirement age to claim Social Security, though, the upside can be huge. You get an 8% boost to your monthly checks for each year you delay, up until age 70. If you need Social Security to cover your expenses, you may not be able to hold off on taking benefits until age 70. But wealthy folks often have enough savings they can live on that delaying Social Security becomes feasible without having to wait to retire. This allows them to lock in even more guaranteed income. 2. Invest the money If you don't have much retirement income outside of Social Security, there's a good chance you'll end up spending those monthly checks in full. The wealthy, on the other hand, can invest their Social Security and grow those benefits into even more money. For wealthy people, Social Security may not be needed at all to cover essentials. So they often get the option to put those benefits into stocks or other wealth-building assets. 3. Use the money to splurge If you rely heavily on Social Security for income in retirement, you may be on a tight budget. But if those benefits are really just extra money, which tends to be the case for wealthy folks, they can be used for fun purchases or splurges instead. Wealthy retirees, for example, might use their Social Security checks to cover vacations, theater tickets, and other such activities. Or, those benefits might be used to do things like buy a sports car or make home upgrades. Give yourself more options, too Clearly, the wealthy have a lot of options in the context of Social Security. But guess what? If you do a good job of saving for retirement, you may be able to buy yourself the options above. Let's say you contribute $500 a month to a retirement account over a 42-year period -- say, ages 25 to 67. If your portfolio gives you a yearly 8% return during that time, which is a bit below the stock market's average, you could end up with over $1.8 million to your name. At that point, your Social Security, too, could become extra money, as opposed to essential money. So if you like the sound of that, pledge to start funding your retirement savings as soon as possible.Read NextApr 4, 2026 •By Selena MaranjianThe Retirement Number Nobody Talks About -- and Why $1 Million May Not Be Enough in 2036Apr 4, 2026 •By Dana GeorgeIs It Possible to Live on Social Security Benefits Alone While Living Abroad?Apr 4, 2026 •By James BrumleyStop Losing Money to Required Minimum Distributions and Use This Simple FixApr 4, 2026 •By Maurie BackmanMedicare Costs Are Climbing Faster Than You Think: What Retirees Need to Know NowApr 3, 2026 •By Stefon WaltersHow Your Social Security Benefit Is Calculated -- and Where Most Retirees Go WrongApr 3, 2026 •By Reuben Gregg BrewerHere's How Claiming Social Security at 62 Affects Your Monthly Income for LifeAbout the AuthorMaurie Backman is a contributing Motley Fool retirement and Social Security expert with more than a decade of experience writing about personal finance, investing, and retirement planning. Maurie previously worked in finance analyzing distressed companies. She studied finance at Binghamton University.TMFBookNerd