How To Retire on $300K And Not Run Out Of Money

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

How Long Will $300,000 Last In Retirement?

The 4% rule is a guideline often used by financial advisors to help clients plan for retirement. The 4% rule suggests that retirees can safely withdraw the amount equal to 4 percent of their savings during their retirement year and then adjust for inflation each subsequent year for 30 years.

However, this rule has been debunked recently, and the appropriate withdrawal rate is now roughly 2.8%.

Monthly Return On 300K Investment

How To Retire On $300K.

The average monthly Social Security Income check for 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 understand the income you could receive from $300,000 in savings. The data will be based on the following:

How Long Will $300K Last In Retirement?

How to Retire on $300,000 Immediately

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

ADDITIONAL READING: How Much Does a $300,000 Annuity Pay?

Total = Monthly Income for Life

How to Retire on $300,000 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).

Total = Monthly Income for Life
Can You Retire On $300K?

Living Off The Interest On $300,000

Some retirees like to withdraw interest from a fixed-interest savings account like a fixed annuity or CD. For example, the interest on three hundred thousand dollars is $10,753.86 annually with a fixed annuity, guaranteeing 3.25% annually.

Find all the current fixed annuity rates here.

Can I Retire At 55 With $300K?

You can retire at 55 with $300,000, earning $16,440 annually for the rest of your life. Starting at age 62, you can start your Social Security Benefits. Is $300k enough to retire at 55? That depends on your lifestyle. You can retire if $1,370 monthly is enough to pay the bills. If you need more income, the answer is no. You can not retire on $300,000 at age 55. You should wait.

Can You Retire With $300K And Social Security?

Why Buy An Annuity?

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 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.

Annuity Basics

Understanding Lifetime Income Riders

Things To Consider When Retiring

  • Inflation is rising whether you like it or not. 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. 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.

Next Steps

If you have $300,000 saved for retirement, annuities are the best way to guarantee that you will have a steady income for life. Request a quote today to see how much money you can receive monthly from an annuity. With annuities, you can rest assured knowing that your retirement savings will last as long as you do.

How To Retire On $300K.

Find Out How Much Retirement Income $300,000 Can Generate

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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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