"The maximum monthly benefit for someone retiring at 62 in 2026 is $2,969, while the maximum for someone waiting until 70 is $5,181. That is a difference of over $2,200 per month, per person, for life."
"For those born in 1964 or later, full retirement age is 67. Claiming at 62 permanently reduces benefits by 30%. Waiting past 67 earns delayed retirement credits of 8% per year through age 70."
"Morningstar's most recent retirement income research puts the safe starting withdrawal rate for new retirees at 3.9%. Applied to $1.4 million, that generates roughly $54,600 per year before taxes."
At age 62, a couple with $1.4 million in assets faces a decision between retiring now or working for eight more years. One spouse prioritizes liquidity and rest, while the other seeks security through continued income. The key factor is when to claim Social Security, with a significant difference in benefits based on the timing. Claiming at 62 reduces benefits by 30%, while waiting until 70 can yield an additional $2,200 per month. The safe withdrawal rate for retirement income is approximately 3.9%, which may be insufficient for their needs.
Read at 24/7 Wall St.
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