A 3.5% yield portfolio requires $2.1 million to fund a 10-year retirement bridge before claiming maximum Social Security benefits.
Retiring at 60 and delaying Social Security until 70 requires a portfolio of $2.1 million at a 3.5% yield to cover $75,000 in annual pretax income. Higher yields reduce the needed capital, with $1.25 million at 6% and $750K at 10% sufficient for the same income stream.
Claiming Social Security at 62 instead of 70 results in a permanent 30% benefit cut, often outweighing potential portfolio yield advantages. The average U.S. household spends $78,535 annually, making the bridge period financially demanding without adequate savings.
Moderate-yield portfolios, which gradually spend principal, typically outperform high-yield strategies that risk distribution cuts midway through the decade-long bridge.