Can I Retire at 60 with $1.5 Million? This guide will show you how to retire on 1.5 million dollars step-by-step. In addition, we’ll provide estimates on your retirement income at different age brackets.
If you are close to transitioning to retirement, check our Retirement Planning Guide.
If you are not close to transitioning to retirement, check out our Guaranteed Retirement Income Guide.
Use an annuity calculator to get a better idea of the retirement income generated.
This guide will answer the following questions:
- Can I retire with 1.5 million dollars at 55?
- Can I retire at 60 with 1.5 million dollars?
- Is $1.5 million enough to retire at age 62?
- Can you retire with $1.5 million comfortably?
- How to Retire on 1.5 Million Dollars
- How Much Does $1.5 Million Payout?
- Living Off the Interest on a Million Dollars
- Why Use Annuities?
- Keeping Up With Inflation
- Things To Consider When Retiring
- Find Out How Much Income Your $1.5 Million Will Provide In Retirement
- Retirement Income Guides
- Frequently Asked Questions
How to Retire on 1.5 Million Dollars
The average monthly Social Security Income check-in 2021 is $1,543 per person. In the tables below, we’ll use an annuity with a lifetime income rider coupled with SSI to provide you a better idea of the income you could receive off a $1,500,000 in savings. The data will be based on:
- Social Security Benefits will be based on couples at $3,086 total.
- $1,500,000 annuity with an income rider providing a monthly income for life.
- The starting point will be age 62 since this is the earliest age to collect SSI.
How to Retire on 1.5 Million Dollars, Immediately
The table below illustrates how much monthly income can be generated immediately with a combination of annuity payments and Social Security Income (SSI).
ADDITIONAL READING: How Much Does A $1,000,000 Annuity Pay?
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $6,480 | $9,566 |
| 65 | $3,086 | $7,081 | $10,167 |
| 70 | $3,086 | $7,700 | $10,786 |
How to Retire on 1.5 Million Dollars in 5 Years
The table below illustrates how much monthly income can be generated in 5 years with a combination of annuity payments and Social Security Income (SSI). If you retire in 5 years on a $1,500,000 annuity, your monthly income for life would be:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $9,575 | $12,661 |
| 65 | $3,086 | $10,125 | $13,211 |
| 70 | $3,086 | $11,329 | $14,415 |
How Much Does $1.5 Million Payout?
The following table will provide an estimate of how much guaranteed income a $1,500,000 annuity will payout, annually, for the rest of a person’s life.
| Age | Immediately | In 5 Years | In 10 years | In 20 Years |
|---|---|---|---|---|
| 40 | $158,070 | |||
| 45 | $177,870 | |||
| 50 | $133,078 | $195,072 | ||
| 55 | $99,048 | $150,000 | $216,495 | |
| 60 | $78,750 | $114,717 | $162,000 | |
| 65 | $86,250 | $120,285 | $177,000 | |
| 70 | $93,750 | $133,299 | $210,652 | |
| 75 | $101,250 | $158,523 |
Living Off the Interest on a Million Dollars
Some retirees like to withdraw interest from a fixed interest savings account like a fixed annuity or CD. For example, the interest on one million five hundred thousand dollars is $376,383 over 7 years with a fixed annuity, guaranteeing 3.25% annually.
Find all the current fixed annuity rates here.
Why Use Annuities?
Currently, annuities are the only retirement plan in the United States that provides a guaranteed income for a lifetime, even if the plan runs out of money. The annuity is basically a money management tool in retirement, taking all the guesswork in budgeting your day-to-day expenses. By utilizing this financial plan, a retiree will never have to worry about running out of money, ever.
Annuity Basics
Understanding Lifetime Income Riders
Keeping Up With Inflation
Some annuities offer a guaranteed lifetime income with the ability to increase regularly to keep up with inflation. Once the income increases, the payment amount is locked in and can never go backward from that point forward.
Example
A 40-year-old purchases a $1,000,000 annuity with a lifetime income rider to retire at age 60. At age 60, the lifetime income amount may be guaranteed $105,380 initially but hypothetically increases to $288,439 by age 67. Once the income has increased to $288,439 annually, this payment is locked in and can never go below $288,439 in the future.
On the other hand, a performance-based annuity may hypothetically generate an income of $381,349 a year for life starting at age 60, increasing to $636,610 a year by age 70. Once the income has increased to $636,610 annually, this payment is locked in and can never go below $636,610 in the future.
Things To Consider When Retiring
- Inflation is rising whether you like it or not. Plan accordingly or decrease your lifestyle.
- Per the U.S. Department of Health and Human Services, you have a 70% chance of going into a Nursing Home, Assisted Living Facility, or Home Health Care. Buy long-term care insurance now.
- There is a 100% chance you will die, buy affordable life insurance, or at the minimum, burial insurance for funeral expenses.
Find Out How Much Income Your $1.5 Million Will Provide In Retirement
Retirement Income Guides
- Is 5 Million Enough To Retire at 60?
- How To Retire on 4 Million Dollars?
- How to Retire with $3 Million?
- Can You Retire on 2 Million Dollars?
- How to Retire on 1 Million Dollars.
- Can I retire at 65 with $500k?
- How to Retire on $200K.
- How Much Should You Have In Retirement At 40?
Frequently Asked Questions
Is $1.5 million enough to retire at 60?
Yes, you can retire at 60 with $1.5 million dollars. At age 60, an annuity will provide a guaranteed level income of $78,750 annually starting immediately, for the rest of the insured’s lifetime. The income will stay the same and never decrease.
If the annuitant selected the increasing income option, they would receive $70,800 annually initially with the income amount increasing over time to keep up with inflation.
Either lifetime income option will continue to pay the annuitant, even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.
Is $1.5 million enough to retire at 62?
Yes, you can retire at 62 with one million five hundred thousand dollars. At age 62, an annuity will provide a guaranteed level income of $78,750 annually starting immediately, for the rest of the insured’s lifetime. The income will stay the same and never decrease.
If the annuitant selected the increasing income option, they would receive $70,800 annually initially with the income amount increasing over time to keep up with inflation.
Either lifetime income option will continue to pay the annuitant, even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.
I’m a licensed financial professional. I’ve sold annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.
My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you.