When to stop maxing out 401K contributions

My wife and I have been maxing out retirement accounts for almost a decade now. We have extremely generous employer matches as well. (6%) Accumulated ~1M $. We are in our late 40s. When is a good time to stop maxing out and just splurge a little.

Based on conservative estimates, we stand to get a combined 6K a month in pension and SS payments starting at 62. We live in a MCOL city. Paid off house and cars. Live frugally and spend ~7K a month at the moment apart from one off expenses like home improvements, large vacations etc.

I am thinking we might as well pay taxes and enjoy the money now rather than accumulate a large retirement nest egg.

Edit: Thank you everyone for the valuable comments. Appreciate it so much!

Is 7K spend frugal? Plain normal suburban life is sure expensive these days. Here is the approximate breakup:

  • Property tax + Insurance + HOA fees + Routine scheduled maintenance = 2000$ a month.
  • Utilities (Gas + Electric + Water + Lawn maintenance + Internet + Cell Phone + Cable + Netflix) = 1000$ a month
  • 2 kids activity fees (music, marital arts, sports, coaching) = 1000$ a month
  • 3 cars (maintenance, gas, insurance) = 700$ a month
  • Groceries = 1300$ a month
  • Misc - Eating out, one movie/live performance outing a month, charity = 1000$ a month

We watch expenses like a hawk. Can this be cut? We sure can! But these things sure bring a lot of joy. Remove the Misc line item completely? Grocery budget I think can be trimmed. I feel buying food in bulk with the club membership causes a lot of food waste! Get the kids out of some of the activities? Pretty much all I can think of. Appreciate any clever ideas you folks might have to cut my monthly spend.

What do I want to splurge the extra money on? Ability to say yes to things that others around us seem to be able to afford. Say go on a cruise with friends on a whim. Buy the latest phone when it comes out. Basically, be in a position to afford some of the wants.

When do we want to retire? Ideally at 62. This is the earliest my pension payout is available.

Asset allocation in Retirement accounts: 80% VTI, 20% QQQ. We are taking a risk here to allow for some extra growth considering we have the pension to fall back on.

Kids college: We have about 50K saved up for each kid. They are 5-7 years from going to college. We figure they can take some loans, so they put some seriousness and deliberate thought into the major they pick in college.

Inheritance: Our house is worth close to a million. We will probably leave that to the kids if possible. Other than that, our primary concern is to take care of ourselves, get the kids job market ready and have some fun in the journey of life.