Retire at 62 vs 67: What 5 Extra Years Mean for Your Nest Egg

Published June 2026 · 5 min read

Five years does not sound like much. But when it comes to retirement timing, those 5 years between 62 and 67 create a triple effect: 5 extra years of contributions, 5 extra years of compound growth, and 5 fewer years of withdrawals. The combined impact can be hundreds of thousands of dollars.

The Triple Effect — with Real Numbers

Assume you are 62 with $500,000 saved, contributing $15,000/year, earning 7% return. At 62: $500K with 4% withdrawal = $20,000/year for ~30 years, depleting around age 92. At 67: after 5 more years of contributions + growth, you have ~$787,000. At 4% withdrawal = $31,480/year — a 57% higher retirement income, and it lasts longer because you are withdrawing for 5 fewer years. Plus: Social Security at 67 is 30% higher than at 62.

Run Your Own Numbers

Every situation is different. Plug your age, savings, and goals into our Retirement Calculator and compare retirement at 62, 65, 67, and 70.