Let’s be conservative.
If the same $201,448 remained invested earning an average return of 5% (which is well below historical long-term market averages), that would compound into $297,630. It is widely accepted based on countless financial planning studies that a properly balanced investment portfolio can sustain a 4% withdrawal strategy for 30 years increasing with inflation without depleting assets to zero. If you were to wait until age 70 to begin withdrawals, a 4% withdraw should be more than sustainable and quite reasonable. Even a 5% withdrawal at age 70 is highly plausible. In the interest of remaining conservative in the assumptions used, we will use the 4% withdrawal approach.
The pool of investment dollars has compounded to an additional $297,630 because Client A did not need to draw on these assets due to the early SS benefit supplementing their income, how much is this worth as an income? Using a 4% withdrawal strategy annually from $297,630 beginning at age 70, you have an annual income in year one of $11,905. This figure is still smaller than the difference between your age 70 benefit and the age 62 benefit ($44,792-$25,181=$19,611). That is a difference of $7,706 annually. So why would it be better to realize the lower income?