Retirement Example
Retirement Income Sources — Social Security + Savings
How to estimate total retirement income combining Social Security and investment portfolio.
Scenario
Retire at 67. Social Security: $1,800/month. Portfolio: $600k.
Inputs
Social Security$1,800/month ($21,600/year)
Portfolio$600,000
4% withdrawal$24,000/year ($2,000/month)
Results
SS + Portfolio (4%)$3,800/month
Annual Income$45,600
vs. Average retiree need~$40–55k/year
Explanation
Combining $1,800/month Social Security with a $600k portfolio at 4% yields $3,800/month — solidly above the average retiree's minimum needs. This combination is achievable for median earners who save consistently.
Key Takeaways
- Every year you delay SS (62→70) increases benefit by ~8%.
- Part-time work in early retirement reduces portfolio draw and extends longevity.