How To Retire At 60 Efficiently

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

The Golden Question: Can You Retire at 60?

The simple answer is yes. Retiring at 60 is possible. However, the more complex answer depends on your financial readiness, lifestyle expectations, and various sources of retirement income. For instance, Social Security benefits can be accessed starting at 62 or older, and annuities can supplement retirement income for the rest of your life.

To retire comfortably at 60, creating a solid financial plan, understanding your expenses, and building up sufficient savings are crucial. Now, let’s delve into how much you need.

How Much Do I Need To Retire At 60 Calculator

Annuities with guaranteed lifetime income riders offer a steady income stream from age 60, supplementing Social Security benefits. They ensure financial security for life, and some plans can increase over time, hedging against inflation and rising living costs. This ensures retirees can maintain their desired lifestyle without worrying about outliving their savings.

Annuities can be funded with cash, IRAs, 401ks, and other retirement plans.

The quotes below are annual payments guaranteed for the rest of your life.

Key Takeaways

  • Retirement Preparation: As you approach or enter retirement, it’s crucial to take actionable steps to secure a comfortable life during your retirement years. Considerations around health care, Social Security, and investment diversification are vital.
  • Increasing Retirement Savings: It’s not too late to boost your retirement savings. Aim to contribute at least 15% of your earnings. Strategies include paying off your mortgage, avoiding dipping into retirement savings for non-retirement expenses, managing debt, and reviewing life insurance coverage.
  • Investment Tips:
    • Maximize Contributions: Invest the maximum amount in your 401(k) as it’s a significant part of your retirement funding. Contributions benefit from being pre-tax with tax-deferred growth.
    • Diversification: Ensure your retirement portfolio is diversified to manage risk effectively. It should include various investments and savings vehicles.
    • Consider Different Investment Vehicles: Explore contributing to a Roth IRA for potential tax-free benefits and consider annuities for a guaranteed income stream.
  • Identifying Income Sources: Be realistic about your income sources in retirement. Consider your investment mix, current and future assets, Social Security timing, health care costs, and the tax implications of drawing down your assets.
  • Calculating Income Needs: Estimate the income you’ll need, aiming for about 75-85% of your pre-retirement income. Since expenses can be unpredictable, consider adding an extra 5-10 percentage points to your estimation.
60 Retirement Age

Understanding Your Retirement Financial Needs

How Much Money Do You Need to Retire at 60?

Financial advisors often suggest aiming for a retirement income that’s about 70% to 80% of your final pre-retirement salary. However, this figure can vary greatly depending on your desired lifestyle, medical costs, and whether you plan to travel frequently.

How Much Should a 60-Year-Old Retire With?

The exact amount a 60-year-old should retire with is highly individual and influenced by numerous factors. As a rule of thumb, some experts recommend having at least 8-10 times your annual salary saved by retirement.

How Much Does a Married Couple Need to Retire at 60?

For married couples, the total needed for retirement depends on shared expenses and potentially dual income sources. Again, aiming for 70-80% of combined pre-retirement income is a good starting point.

Joint Life Annuities offer a guaranteed income (that does not decrease) for the rest of both spouses’ lifetimes.

Related Tools: Calculate monthly retirement income for couples using our retirement calculator

Retiring At 60

The Role of 401k in Your Retirement Plan

How Much Do I Need in My 401k to Retire at 60?

Your 401k is a vital part of your retirement savings. It’s recommended that by age 60, you aim to have about six to eight times your annual salary in your 401k. However, this figure may vary depending on your lifestyle and medical expenses.

To Retire At 60

Is Retiring at 60 Too Early?

Retiring at 60 is not necessarily too early if you’ve planned adequately. It can be a fulfilling and rewarding time if you’re financially secure. However, it’s crucial to consider the potential implications of early retirement, such as a smaller Social Security payout, and to plan accordingly.

Retire At 60

How Much Retirement Income Can I Receive At 60?

The following table will estimate how much annual guaranteed income a 60-year-old can receive from a $1,000,000 annuity with a guaranteed lifetime withdrawal benefit, now or in the future. This table does not include Social Security Benefits.

Current AgeIncome At 60
40$155,065
45$155,065
50$130,615
55$91,516
60$68,125

Next Steps

Retiring at 60 is a dream for many, but it requires careful planning and preparation. Whether you’re wondering how to retire at 60 with no money or on track with your savings, it’s essential to understand your financial needs and potential income sources.

Remember, you’re not just planning for a number in a bank account. You’re planning for peace of mind, time with loved ones, and the freedom to pursue your passions. With the proper planning and preparation, you can turn the dream of retiring at 60 into your reality.

Can I Retire At 60

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Frequently Asked Questions

How much money is needed to retire at age 60?

The answer to this question depends on several factors, including your lifestyle and how much income you need to maintain your current standard of living. However, as a general rule of thumb, you will need about 75% of your pre-retirement income to cover your expenses in retirement.

Can I retire at 60 and get Social Security?

Yes, you can retire at 60. However, you must wait until age 62 (unless disabled) to collect your Social Security benefits. Still, your benefits will be reduced if you start receiving them before your full retirement age, which is 66. On the other hand, you will receive a higher monthly benefit if you wait until your full retirement age to collect benefits.

Where should I invest my money at age 60?

The answer to this question depends on your goals and risk tolerance. However, as a general rule of thumb, you shouldn’t be exposed to market volatility if you can’t afford to lose money. We recommend fixed index annuities in these circumstances.

How many times is the salary to retire at 60?

Many publications say retiring at 60 means saving at least a few million dollars. The truth is you will need about 75% of your pre-retirement income to cover your expenses in retirement. Using annuities to save for retirement will allow you to achieve this at a fraction of the cost if there is plenty of time to plan before age 60.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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