Can I Retire at 60 With $750K?

Shawn Plummer

CEO, The Annuity Expert

As they get closer to retirement age, people ask a common question: How much money do I need to save to retire? Of course, the answer depends on various factors, including your lifestyle and how much money you expect to receive from Social Security and other sources. This guide will walk you through the steps you need to take to calculate if you can afford to retire at 60 with $750K.

How Long Will $750,000 Last In Retirement?

The longevity of $750,000 in retirement hinges on yearly expenses, investment yields, inflation, and other variables. On average, a 4% annual withdrawal ($30,000) could extend over 25 years. Individual scenarios can significantly influence this estimate. Yet, an annuity with a lifetime income rider assures a higher retirement income and guarantees a continuous paycheck, even if the principal is exhausted.

Is 700K Enough To Retire

How to Retire on $750,000

Can I retire on $750k plus Social Security? Yes, you can! The average monthly Social Security Income check-in 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 better estimate the income you could receive off a $750,000 savings. The data will be based on the following:

How to Retire on 750K, Starting Immediately

The table below illustrates how much monthly income can be generated immediately with annuity payments and Social Security Income (SSI).

ADDITIONAL READINGHow Much Does A $500,000 Annuity Pay?

AgeSSIAnnuityTotal
62$3,086$4,398$7,484
65$3,086$4,609$7,695
70$3,086$4,844$7,930
Total = Monthly Income for Life

How to Retire on 750k 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 $750,000 annuity, your monthly income for life would be:

AgeSSIAnnuityTotal
62$3,086$6,662$9,748
65$3,086$7,040$10,126
70$3,086$7,623$10,709
Total = Monthly Income for Life
How Long Will $750,000 Last In Retirement

How much income will I receive if I retire on $750,000 at age 60?

The following guaranteed income amounts are annual and do not include Social Security Benefits.

Annuity Purchase DateAnnual Income At Age 60
Age 40$116,298
Age 45$116,298
Age 50$104,100
Age 55$68,637
Rates May Change and vary By State
How Long Will 750 000 Last In Retirement

How Much Income Does a $750,000 Annuity Generate?

The following table will estimate how much guaranteed income a $750,000 annuity will pay out annually for the rest of a person’s life.

AgeImmediatelyIn 5 YearsIn 10 yearsIn 20 Years
40$116,298
45$130,317
50$104,100$143,152
55$68,637$107,111$154,999
60$51,094$76,911$117,660
65$55,313$84,485$127,398
70$58,125$91,477$136,894
75$61,875$103,369

Why Use Annuities For Retirement?

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. As a result, the Annuity is 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, and you’ll be able to earn interest along the way!

Use an annuity calculator to understand better the retirement income generated.

Annuity Basics

Understanding Lifetime Income Riders

Estimate Your Retirement Income Payments

Use our annuity calculator to generate estimates, then request a quote.

Keeping Up With Inflation

Some annuities offer a guaranteed lifetime income that can 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 $500,000 annuity with a lifetime income rider to retire at age 60. At age 60, the lifetime income may be guaranteed $52,690 initially but hypothetically increases to $151,782 by age 67. Once the income has increased to $151,782 annually, this payment is locked in and can never go below $151,782.

On the other hand, a performance-based annuity may hypothetically generate an income of $190,674 a year for life starting at age 60, increasing to $317,305 a year by age 70. Once the income has increased to $317,305 annually, this payment is locked in and can never go below $317,305.

How Long Will 750K Last In Retirement

Things to Consider when Retiring

  • If you can’t afford to lose money, invest your savings without the risk.
  • Inflation is rising whether you like it or not. So, plan accordingly or decrease your lifestyle.
  • Per the U.S. Department of Health and Human Services, you have a 70% chance of entering a Nursing Home, Assisted Living Facility, or Home Health Care. So buy long-term care insurance now.
  • There is a 100% chance you will die, so buy affordable life insurance or, at the minimum, burial insurance for funeral expenses.

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.

Next Steps

Request a quote to determine how much income $750,000 will provide you in retirement. Annuities are the only financial plan in the United States offering a guaranteed lifetime income, regardless of the investment’s performance. This makes them an incredibly safe and secure way to manage your finances during retirement. Contact us today to learn about annuities and request a quote for your situation. We would be happy to help!

Retire At 62 With $750,000

Find Out How Much Income Your $750,000 Will Provide In Retirement

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Frequently Asked Questions

Can I retire at 60 with 750k?

Yes, it is possible to retire at 60 with $750k, although the feasibility depends on various factors such as lifestyle, expenses, and expected length of retirement. It is recommended to consult with a financial advisor who can assess the individual’s specific situation and provide tailored advice for retirement planning.

How long will $750,000 last in retirement?

The length of time $750,000 will last in retirement depends on several factors, including the retiree’s spending habits and investment returns. However, a rough estimate can be made by dividing the amount by the anticipated annual expenses. For example, if annual expenses are $50,000, the funds would last for approximately 15 years.

How Much Social Security Will I Get At 62?

If Social Security Benefits are elected at age 62, the wage-earner will receive roughly 70% of their full benefits. The spouse will receive a 35% reduction of their maximum benefit.

What is a retirement calculator?

A retirement calculator is a tool that helps individuals estimate the amount of money they need to save to retire comfortably. It takes into account factors such as current age, desired retirement age, expected income, and desired lifestyle. These calculators can be found online and are a useful resource for retirement planning.

Retirement Income Guides

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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