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