Can I Retire At 60 With $1 Million?

Shawn Plummer

CEO, The Annuity Expert

Retire At 60 With $1 Million.

Yes, you can retire at 60 with $1 million, but it requires careful planning and consideration of various factors:

  1. Annuity Options: If you buy an annuity at age 60, it may pay around $72,000 annually. However, if you wait until age 65, the payout could increase to $110,001 per year. This difference is due to the delayed start of payments, allowing the annuity to accumulate more value.
  2. Social Security Benefits: You can start collecting Social Security at age 62. The earlier you start, the lower the monthly benefit, as opposed to waiting until full retirement age or later.
  3. Health Insurance: Until you qualify for Medicare at age 65, you’ll need to purchase private health insurance, which can be a significant expense.
  4. Living Expenses and Inflation: Consider your annual living expenses and how they might increase due to inflation. $72,000 might be sufficient now but could be less adequate in the future.
  5. Investment Strategy: If your $1 million is invested, the returns could supplement your income. However, this comes with investment risks.
  6. Lifespan and Healthcare Costs: Longer life expectancies and potential healthcare costs in later life should be factored into your retirement planning.
  7. Lifestyle and Unexpected Expenses: Your desired lifestyle and the possibility of unforeseen expenses also play a role in determining the adequacy of your retirement funds.

Find out your annuity payments using our accurate annuity payments calculator.

Conclusion

Retiring at 60 with $1 million is possible, but it requires careful planning around annuities, Social Security, health insurance, and managing living expenses. The decision to buy an annuity now or later, along with considering other income sources and expenses, will impact your financial security in retirement.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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