Can you retire with $300k? This guide will show you how to retire on $300k, 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.
This guide will answer the following questions:
- Can I retire with $300K?
- How long will $300,000 last in retirement?
- Can I retire at 55 with $300k?
- How much money do you need to live comfortably for the rest of your life?
How Long Will $300,000 Last In Retirement?
The amount of time it will take for $300,000 to dwindle down to zero is based on the amount a retiree withdraws and the average growth rate. For example, if a retiree withdrew $30,000 a year with no growth to their account, the $300k would be totally spent in 9 to 10 years if including fees spent in the account. However, an annuity will continue to provide the same paycheck to the retiree for the rest of their lives, even after the account has been run out of money.
How To Retire On $300K.
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 $300,000 in savings. The data will be based on:
- Social Security Benefits will be based on couples at $3,086 total.
- $300,000 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 $300,000 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 READING: How Much Does a $300,000 Annuity Pay?
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $1,313 | $4,399 |
| 65 | $3,086 | $1,438 | $4,524 |
| 70 | $3,086 | $1,563 | $4,649 |
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).
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $1,955 | $5,041 |
| 65 | $3,086 | $2,083 | $5,169 |
| 70 | $3,086 | $2,295 | $5,381 |
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 per year 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 $13,284 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. If $1,107 a month is enough to pay the bills, yes, you can retire. If you need more income, the answer is no, you can not retire on $300,000 at age 55. You should wait.
Why Buy An Annuity?
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
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 going into a Nursing Home, Assisted Living Facility, or Home Health Care. Buy long-term care insurance now.
- There is a 100% chance you will die, buy affordable life insurance, or at the minimum, burial insurance for funeral expenses.
Find Out How Much Retirement Income $300,000 Can Generate
Retirement Income Guides
- Is 5 Million Enough To Retire at 60?
- Can You Retire on 2 Million Dollars?
- Can I Retire at 60 with $1.5 Million?
- How to Retire with 1 Million Dollars.
- How To Retire at 60 with $500K.
- How To Retire at 62 with $400k.
- How to Retire with $200K.
- How Much Should A 40 Year Old Have In Retirement?
I’m a licensed financial professional. I’ve sold 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.
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.