In order to retire comfortably on $300K, you’ll need to plan and save in advance. Here are a few tips from the pros on how to make that happen!
- How Long Will $300,000 Last In Retirement?
- How To Retire On $300K.
- How to Retire on $300,000 Immediately
- How to Retire on $300,000 in 5 Years
- Living Off The Interest On $300,000
- Can I Retire At 55 With $300K?
- Why Buy An Annuity?
- Things To Consider When Retiring
- Next Steps
- Find Out How Much Retirement Income $300,000 Can Generate
- Retirement Income Guides
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 the year they retire and then adjust for inflation each subsequent year for 30 years.
However, this rule has been debunked in recent years, and the appropriate withdrawal rate is now roughly 2.8%.
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 give you a better idea of the income you could receive from $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 | $1,588 | $4,674 |
| 65 | $3,086 | $1,683 | $4,769 |
| 70 | $3,086 | $1,838 | $4,924 |
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 | $2,403 | $5,489 |
| 65 | $3,086 | $2,538 | $5,624 |
| 70 | $3,086 | $2,747 | $5,833 |
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 a month 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.
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.
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.
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 each month from an annuity. With annuities, you can rest assured knowing that your retirement savings will last as long as you do.
