Do you want to know how to retire on $800,000? It’s not as difficult as you may think. This guide will discuss the steps you need to take to achieve this goal. We will also provide information on how to save and invest money wisely. So, if you are looking for ways to make your retirement more comfortable, keep reading!
- How to Retire on $800K comfortably
- How to Retire on $800,000, Starting Immediately
- How to Retire on $800,000 in 5 Years
- How to Retire on $800k in 20 Years
- How To Retire On $800,000 By age
- Why Use An Annuity?
- Keeping Up With Inflation
- Things To Consider When Retiring
- Next steps
- Find Out How Much Income Your $800,000 Will Provide In Retirement
- Frequently Asked Questions
- Retirement Income Guides
How to Retire on $800K comfortably
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 $800,000 in savings. The data will be based on the following:
- Social Security Benefits will be based on couples at $3,086 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 a combination of 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 | $3,086 | $3,500 | $6,586 |
| 65 | $3,086 | $3,833 | $6,919 |
| 70 | $3,086 | $4,167 | $7,253 |
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 | $3,086 | $5,100 | $8,186 |
| 65 | $3,086 | $5,440 | $8,526 |
| 70 | $3,086 | $6,007 | $9,093 |
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 |
|---|---|---|---|
| 40 | $3,086 | $7,025 | $10,111 |
| 45 | $3,086 | $7,905 | $10,991 |
| 50 | $3,086 | $8,670 | $11,756 |
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 | $65,782 |
| Age 45 | $65,262 |
| Age 50 | $49,000 |
| Age 55 | $33,600 |
Retire At Age 60 With $800k.
| Annuity Purchase Date | Annual Income At 60 |
|---|---|
| Age 40 | $84,304 |
| Age 45 | $75,995 |
| Age 50 | $70,975 |
| Age 55 | $52,826 |
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 | $103,346 |
| Age 45 | $94,864 |
| Age 50 | $87,612 |
| Age 55 | $78,419 |
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.
Annuity Basics
Understanding Lifetime Income Riders
Keeping Up With 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.
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 going into 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, 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
Can I retire at 60 with $800k?
Yes, you can retire at 60 with eight hundred thousand dollars. At age 60, an annuity will provide a guaranteed level income of $42,000 annually, starting immediately, for the rest of the insured’s lifetime. The income will stay the same and never decrease.
If the annuitant selected the increasing income option, they would receive $37,760 annually initially, with the income amount increasing over time to keep up with inflation.
Either lifetime income option will continue to pay the annuitant even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.
Can I Retire at 64 with $800K in Savings?
Yes, you can retire at 64 with eight hundred thousand dollars. At age 64, an annuity will provide a guaranteed level income of $42,000 annually, starting immediately, for the rest of the insured’s lifetime. The income will stay the same and never decrease.
If you wait one year and start your lifetime income at age 65, your guaranteed level income will increase to $51,744 annually for life.
If the annuitant selected the increasing income option, they would receive $37,760 annually initially, with the income amount increasing over time to keep up with inflation.
Either lifetime income option will continue to pay the annuitant even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.
Retirement Income Guides
- How to Retire Next Year At Age 72 With Only $800k.
- Is 5 Million Enough To Retire At 60?
- How To Retire On 4 Million Dollars?
- Can You Retire On 2 Million Dollars?
- Can I Retire At 60 With $1.5 Million?
- How to Retire on $500K.
- How to Retire with $1 Million?
- How to Retire on $200K.
- How Much Should I Have Saved For Retirement By Age 40?