How to Retire on $200,000 Inheritance

Shawn Plummer

CEO, The Annuity Expert

How to retire on a $200,000 inheritance? This guide will tell you how to retire on 200k for the rest of your life, guaranteed. Additionally, here’s how to make that money act as a monthly pension.

This guide will answer the following questions:

  • How to retire on $200k?
  • What to do with $200k?
  • How much would a $200k annuity pay?

How to Retire on $200K

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 $200,000 from the inheritance or retirement savings. The data will be based on:

  • Social Security Benefits will be based on couples at $3,086 total.
  • $200,000 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.

Can You Retire on $200,000 Starting Today?

It will be a modest retirement, but you can do it. 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 $200,00 Annuity Pay?

AgeSSIAnnuityTotal
62$3,086$905$3,991
65$3,086$962$4,048
70$3,086$1,062$4,148
Total = Monthly Income for Life

How to Retire on $200,000 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 $200,000 annuity, your monthly income for life would be:

AgeSSIAnnuityTotal
62$3,086$1,380$4,466
65$3,086$1,465$4,551
70$3,086$1,614$4,700
Total = Monthly Income for Life

Living Off the Monthly Interest on $200,000

Some retirees like to withdraw interest from a fixed interest savings account like a fixed annuity or CD. For example, the interest on two hundred thousand dollars is $50,185 over seven years with a fixed annuity, guaranteeing 3.25% annually.

Find all the current fixed annuity rates here.

Why Use Annuities?

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.

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.

Things To Consider When Retiring

Next Steps

So, if you’re looking to retire on a $200,000 inheritance and live comfortably for the rest of your days, we can help make that happen. Our retirement planning services are designed to take all the guesswork out of the process and ensure you have everything you need to enjoy your golden years in style. Don’t wait – contact us today for a free consultation!

How To Retire On $200,000 Inheritance

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If you are not close to transitioning to retirement, check out our Guaranteed Retirement Income Guide.

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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