Can I Retire At 62 With $1 Million In My 401K?

Shawn Plummer

CEO, The Annuity Expert

Retire At 62 With $1 Million

Yes, you can retire at 62 with $1 million in your 401k. Here’s how:

  1. Annuity at Age 62: If you buy an annuity at 62, it will pay you $70,375 annually for life.
  2. Annuity at Age 65: Waiting until age 65 to buy the annuity increases the annual payout to $92,130.
  3. Social Security Benefits: These can be collected starting at 62. However, claiming early reduces your benefits compared to waiting until full retirement age.
  4. Health Insurance: You’ll need private health insurance until you’re eligible for Medicare at 65.

Our simple annuity calculator makes annuity calculations easy.

Considerations for Retiring at 62

  • Living Expenses: Ensure your annual living expenses align with your income from the annuity and Social Security.
  • Inflation: The value of fixed payments will decrease over time due to inflation.
  • Longevity Risk: Plan for a longer life expectancy to avoid outliving your savings.
  • Investment Risk: Keep some investments to hedge against inflation and increase wealth.
  • Healthcare Costs: Budget for increasing healthcare costs as you age.

Conclusion

Retiring at 62 with $1 million in your 401k is feasible with careful planning. Consider the pros and cons of annuity options and prepare for healthcare costs.

Contact us today for a free quote.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, 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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