The above chart demonstrates the potential benefits of waiting to retire by showing the increase in value of one's investment portfolio and first-year pretax retirement income over time.
The smallest bar shows that with a portfolio of $650,000 at age 62, one's first-year pretax retirement income would be $42,500 with $16,500 coming from Social Security benefits and $26,000 withdrawn from their portfolio. The next bar shows that the portfolio would grow to $765,000 by age 64, resulting in a first-year pretax income of $49,500 with $18,900 coming from Social Security benefits and $30,600 withdrawn from their portfolio. This represents a 16% increase in pretax income over age 62. The next bar shows that the portfolio would grow to $965,000 by age 67, resulting in a first-year pretax income of $62,200 with $23,600 coming from Social Security benefits and $38,600 withdrawn from their portfolio. This represents a 46% increase in pretax income over age 62. The final bar shows that the portfolio would grow to $1,205,000 by age 70, resulting in a first-year pretax income of $77,500 with $29,300 coming from Social Security benefits and $48,200 withdrawn from their portfolio. This represents an 82% increase in pretax income over age 62.
The above chart demonstrates the potential benefits of waiting to retire by showing the increase in value of one's investment portfolio and first-year pretax retirement income over time.
The smallest bar shows that with a portfolio of $650,000 at age 62, one's first-year pretax retirement income would be $42,500 with $16,500 coming from Social Security benefits and $26,000 withdrawn from their portfolio. The next bar shows that the portfolio would grow to $765,000 by age 64, resulting in a first-year pretax income of $49,500 with $18,900 coming from Social Security benefits and $30,600 withdrawn from their portfolio. This represents a 16% increase in pretax income over age 62. The next bar shows that the portfolio would grow to $965,000 by age 67, resulting in a first-year pretax income of $62,200 with $23,600 coming from Social Security benefits and $38,600 withdrawn from their portfolio. This represents a 46% increase in pretax income over age 62. The final bar shows that the portfolio would grow to $1,205,000 by age 70, resulting in a first-year pretax income of $77,500 with $29,300 coming from Social Security benefits and $48,200 withdrawn from their portfolio. This represents an 82% increase in pretax income over age 62.
Important information:
Content is provided as educational only and should not be relied on for other than broadly informational purposes. Investors should make investment decisions based on their unique investment objectives and financial situation.