Fact: Working Two More Years Could Add $200,000 to A 68-Year-Old's Retirement

"At 68, you're past full retirement age for Social Security (67 for those born in 1960 or later). Each additional year of work increases delayed retirement credits by 8% annually until age 70, potentially adding thousands to your annual benefit. Meanwhile, your portfolio grows and you delay withdrawals that could last 20 to 30 years. The Critical Financial Calculation The key tension is sustainable income versus longevity risk."

"A diversified portfolio following the traditional 4% withdrawal rule generates $40,000 annually from a $1 million nest egg. However, recent research suggests 3.9% may be safer for 2026 retirees given current market conditions. The S&P 500 has returned 13.64% over the past year, but bonds have struggled, with the aggregate bond market (AGG) down 2.5% over the same period due to rising rates."

At age 68 with strong savings, the decision centers on balancing financial security, personal fulfillment, and finite working years. Delaying Social Security until age 70 increases benefits by about 8% per year, boosting monthly income and reducing portfolio withdrawals. Sustainable income must be weighed against longevity risk because retirement may span two to three decades. Traditional 4% withdrawal from $1 million yields $40,000 annually, while current conditions suggest a safer rate near 3.9% for 2026 retirees. Stocks have recently rallied but bonds have lagged, affecting portfolio returns. Working one to two more years while saving a portion of earnings can add roughly $150,000–$200,000 in cushion.

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