Is 5 Million Enough To Retire at 60?

Shawn Plummer

CEO, The Annuity Expert

When it comes to retirement savings, there’s a lot of conflicting information out there. Some people say that you need to have millions of dollars saved up in order to retire comfortably, while others claim that you can get by with much less. So, what’s the truth? Is 5 million enough to retire at 60? In this guide, we’ll take a look at the reality of retirement savings and help you figure out how much money you’ll need to have saved up in order to live comfortably during your golden years.

How to Retire on $5 Million Dollars 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 provide you a better idea of the income you could receive off 5 million dollars of retirement savings. The data will be based on:

  • Social Security Benefits will be based on couples at $3,086 total.
  • $5,000,000 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.

Can You Retire on $5 Million Starting Today?

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

ADDITIONAL READINGHow Much Does A $1,000,000 Annuity Pay Per Year?

Total = Monthly Income for Life

How to Retire on $5,000,000 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 a $5,000,000 annuity, your monthly income for life would be:

Total = Monthly Income for Life

Living Off the Monthly Interest on $5,000,000

Some retirees like to withdraw interest from a fixed interest savings account like a fixed annuity or CD. For example, the interest on five million dollars is $1,254,612 over 7 years with a fixed annuity, guaranteeing 3.25% annually.

Find all the current fixed annuity rates here.

Why Use 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

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Understanding Lifetime Income Riders

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Estimate Your Retirement Income Payments

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Keeping Up With Inflation

Some annuities offer a guaranteed lifetime income with the ability to increase regularly to keep up with inflation. Once the income increases, the payment amount is locked in and can never go backward from that point forward.


A 40-year-old purchases a $1,000,000 annuity with a lifetime income rider to retire at age 60. At age 60, the lifetime income amount may be guaranteed $105,380 initially but hypothetically increases to $288,439 by age 67. Once the income has increased to $288,439 annually, this payment is locked in and can never go below $288,439 in the future.

On the other hand, a performance-based annuity may hypothetically generate an income of $381,349 a year for life starting at age 60, increasing to $636,610 a year by age 70. Once the income has increased to $636,610 annually, this payment is locked in and can never go below $636,610 in the future.

How Much Income Does $5 Million Generate?

The following table will provide an estimate of how much guaranteed income a $5,000,000 annuity will payout, annually, for the rest of a person’s life.

AgeImmediatelyIn 5 YearsIn 10 yearsIn 20 Years

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.


If you want to retire with $5 million, annuities are the way to go. Request a quote today and find out how much lifetime income you could receive from that amount. With an annuity, you can be sure of a comfortable retirement – no matter what happens in the markets.

Find Out How Much Income Your $5 Million Will Provide In Retirement

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Frequently Asked Questions

Can I retire at 60 with $5 million?

Yes, you can retire at 60 with five million dollars. At age 60, an annuity will provide a guaranteed level income of $236,500 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 $200,000 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.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on 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.

The Annuity Expert is an online insurance agency servicing consumers across the United States. 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. 

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