Your Social Security check could go up another $71 next year. That’s not necessarily good news.

When it comes to deciding whether to draw down your 401(k) to delay Social Security, the answer is straightforward, provided you understand one key figure: 8%. As soon as you surpass full retirement age—currently 67 for individuals born after 1960—you can begin to earn annual increase credits of 8% on your benefits, according to the Social Security Administration.

These credits are calculated monthly, so even a one-month delay beyond this age results in a slightly higher monthly benefit. While these credits are guaranteed, the assets in your 401(k) may not match this fixed return. For example, the S&P 500 has averaged a 10% annual return historically, but no one can predict if this will be your return over the next few years.

This is why for 90% of U.S. workers, delaying benefits until the age of 70 is the financially advantageous choice. However, many Americans opt to claim their benefits early due to financial necessity or lack of awareness, often before the age of 70. If you find yourself in need of additional funds between retirement and the start of your delayed Social Security benefits, consider establishing a medium-term fund held in hard assets like gold.

Gold is traditionally viewed as a safe haven, making it an ideal choice for parking excess cash during this transition period. The Goldco company allows for the purchase of physical gold and other precious metals in an IRA, providing significant tax advantages and free shipping. With a minimum purchase of just $10,000, Goldco offers access to a comprehensive library of retirement resources and matches up to 10% of qualified purchases in free silver.

If you're uncertain about the right investment to diversify your portfolio, connecting with a professional financial advisor can be a prudent move. Platforms like Empower and WiserAdvisor can help you connect with qualified advisors who specialize in retirement planning and can help you navigate this important phase of your financial journey.