How Long Will $800,000 Last In Retirement?
How long $800,000 lasts in retirement depends on yearly expenses, investment gains, and inflation. Drawing $32,000 a year might make it last 25 years. Individual situations can change this. An annuity with a lifetime income rider can offer a steady income, even after using up the initial amount.
How to Retire on $800K comfortably
The average monthly Social Security Income check in 2023 is $1,701 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 $800,000 in savings. The data will be based on the following:
- Social Security Benefits will be based on couples at $3,402 total.
- Deferred 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 $800,000, Starting 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 $1,000,000 Annuity Pay?
If you retire on $800k starting immediately, your monthly income for life would be:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,402 | $5,033 | $8,435 |
| 65 | $3,402 | $5,287 | $8,689 |
| 70 | $3,402 | $5,700 | $9,102 |
How to Retire on $800,000 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 an $800,000 annuity, your monthly income for life would be:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,402 | $7,654 | $11,056 |
| 65 | $3,402 | $7,928 | $11,330 |
| 70 | $3,402 | $8,487 | $11,907 |
How to Retire on $800k in 20 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 20 years on $800,000, your monthly income for life would be:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 42 | $3,402 | $11,092 | $15,304 |
| 45 | $3,402 | $11,695 | $15,097 |
| 50 | $3,402 | $12,884 | $16,286 |
How To Retire On $800,000 by Age
The following guaranteed income amounts are annual and do not include Social Security Benefits.
Retire At Age 55 With $800k.
| Annuity Purchase Date | Annual Income At 55 |
|---|---|
| Age 40 | $109,309 |
| Age 45 | $96,203 |
| Age 50 | $70,560 |
| Age 55 | $52,000 |
Retire At Age 60 With $800k
| Annuity Purchase Date | Annual Income At 60 |
|---|---|
| Age 40 | $126,262 |
| Age 45 | $124,052 |
| Age 50 | $111,040 |
| Age 55 | $77,354 |
Retire At Age 65 With $800k
The following guaranteed income amounts are annual and do not include Social Security Benefits.
| Annuity Purchase Date | Annual Income At 65 |
|---|---|
| Age 40 | $146,168 |
| Age 45 | $140,334 |
| Age 50 | $139,005 |
| Age 55 | $115,123 |
Why Use 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. 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, and you’ll be able to earn interest along the way!
Annuity Basics
Understanding Lifetime Income Riders
Things To Consider When Retiring
- If you can’t afford to lose money, invest your savings without the risk.
- Inflation is rising whether you like it or not. So, plan accordingly or decrease your lifestyle in the future.
- 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. So 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
So, how much income can you expect from an $800,000 retirement fund? Request a quote to find out. Annuities are the only retirement plan in the United States that provides a guaranteed lifetime income, no matter how long you live. Withdrawals and payments will continue even if the plan runs out of money – so you can rest assured your retirement savings are safe. Request a quote today to see how much monthly income you could receive from an annuity.
Find Out How Much Income Your $800,000 Will Provide In Retirement
Frequently Asked Questions
How long will $800K last in retirement?
With an annuity with a lifetime income rider, your money will last for the rest of your life.
What is a good monthly income to have in retirement?
A “good” monthly retirement income can vary widely depending on individual needs, lifestyle, expenses, location, and other factors. Many financial experts suggest aiming to replace 70-80% of your pre-retirement income. Consulting with a financial planner who understands your situation would provide the most accurate recommendation for your monthly retirement income.
How much money do you need to have to live off interest?
With a lifetime income rider annuity, you will receive a monthly income in addition to your social security income for the rest of your life.
Does an annuity account for inflation?
Some annuities offer a guaranteed lifetime income that can regularly increase to keep up with inflation. Once the income increases, the payment amount is locked in and can never go backward from that point forward.
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- Utilize this retirement calculator to estimate your future financial needs effectively.