Consider The Upside of Staying Employed
Monday, March 19th, 2012 and is filed under Investing Quick Tip
How much impact could working five extra years have on your retirement? Let’s assume you’re 65 and have $1,000,000 in retirement assets. If you could earn 5% a year on those funds, your retirement savings would be worth about $1,275,000 at age 70, or about 28% more than at age 65. That means your nest egg could support almost 28% more in distributions.
Plus, let’s assume you could save $15,000 a year for each of those 5 years. The extra savings would help boost the plan balance to $1,360,000, or about 36% more than at age 65.
By waiting five years to retire, you have the opportunity to increase your retirement assets and potential retirement income by a pretty good percentage