Your golden years don’t have to go down the drain — here’s how to keep your savings flowing strong through retirement

Core Insights - The average retirement age in 2024 is 62, while most Americans begin claiming Social Security at age 65, creating a three-year gap where retirees rely on personal savings [1][2] - Early retirement can significantly impact long-term financial health, necessitating careful planning to ensure savings can sustain retirees until Social Security benefits commence [2] Financial Risks - Retiring before claiming Social Security leads to a vulnerable financial period where retirees must manage both living expenses and market volatility [3] - An example illustrates that a retiree with $1 million savings withdrawing 6% annually could face a drastic reduction in savings if the market declines, potentially leaving them with just over $525,000 before receiving Social Security benefits [4] Strategic Solutions - Establishing a "bridge fund" composed of stable assets is recommended to mitigate risks associated with early retirement and market fluctuations [5] - By reallocating a portion of the portfolio into bonds or Treasury funds, retirees can enhance their financial stability and maintain their lifestyle without the stress of market changes [6]