Can I Retire at 60 With $750K?

Shawn Plummer

CEO, The Annuity Expert

Can I retire at age 60 with $750k? This guide will show you how to retire on $750k, 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.

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 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 $750,000 in savings. The data will be based on:

  • Social Security Benefits will be based on couples at $3,086 total.
  • $750,000 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 750K, Starting 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 READINGHow Much Does A $500,000 Annuity Pay?

AgeSSIAnnuityTotal
62$3,086$3,281$6,367
65$3,086$3,594$6,680
70$3,086$3,906$6,992
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$4,781$7,867
65$3,086$5,100$8,186
70$3,086$5,631$8,717
Total = Monthly Income for Life

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

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

Annuity Purchase Date Annual Income At Age 60
Age 40$79,035
Age 45$71,245
Age 50$66,539
Age 55$49,524
Rates May Change and vary By State

How Much Income Does $750,000 Annuity Generate?

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

AgeImmediatelyIn 5 YearsIn 10 yearsIn 20 Years
40$79,035
45$88,935
50$66,539$97,536
55$49,524$73,517$108,247
60$39,375$57,358$80,015
65$43,125$61,200$87,666
70$46,875$67,575$105,813
75$50,625$79,262

Why Use Annuities For Retirement?

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

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Understanding Lifetime Income Riders

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Estimate Your Retirement Income Payments

Take advantage of 17 different annuity calculators to generate estimates, then request a quote.

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 $500,000 annuity with a lifetime income rider to retire at age 60. At age 60, the lifetime income amount 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 in the future.

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 in the future.

Things to consider when Retiring

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, you can retire at 60 with five hundred thousand dollars. At age 60, an annuity will provide a guaranteed level income of $39,375 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 $35,400 annually initially with the income amount increasing over time to keep up with inflation.

At age 62, you can start Social Security Benefits. Combining the two sources of income could provide a fixed income stream for the rest of your lifetime.

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.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on 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.

The Annuity Expert is an online insurance agency servicing consumers across the United States. 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. 

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