Can You Retire at 72 with $500K?

Shawn Plummer

CEO, The Annuity Expert

Retirement at 72 with a $500K Savings

Yes, retiring at 72 with $500,000 is feasible.

Here’s how:

  • Annuity Option: Opting for an annuity can provide a steady income stream. At 72, an annuity might offer approximately $43,350 annually for life. This depends on the specific annuity terms and market conditions.
  • Social Security Benefits: Alongside an annuity, Social Security benefits serve as an additional income source. The amount varies based on your earnings history.
  • Required Minimum Distributions (RMDs): From age 73, you’ll need to start taking RMDs from qualified retirement accounts like 401(k)s and IRAs. This is a mandatory withdrawal, taxed as income.

Determine your annuity income easily with our accurate calculator.

Factors to Consider

  • Healthcare Costs: Older adults often face significant healthcare expenses. Ensure your budget accounts for this.
  • Lifestyle Choices: Your retirement lifestyle impacts your budget. Consider travel, hobbies, and living arrangements.
  • Inflation: Inflation can erode purchasing power over time. Plan for increasing costs, especially in healthcare and living expenses.

Example Retirement Budget

Expense CategoryMonthly Cost
Housing$1,200
Utilities$300
Groceries$400
Healthcare$500
Transportation$250
Leisure$300

Note: These are estimates and can vary greatly based on individual circumstances.

Conclusion

Retiring at 72 with $500K is achievable with careful planning. An annuity, combined with Social Security and RMDs, can support a modest lifestyle. Remember to account for healthcare, inflation, and personal lifestyle choices in your planning. With the right strategy, you can enjoy a comfortable 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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