Can You Retire at 65 with $1 Million in 401k and Social Security Benefits?

Shawn Plummer

CEO, The Annuity Expert

Can I retire at 65 if I have $1 million in a 401k and will receive $2500 monthly from Social Security?

Yes. Rolling over a 401k into an IRA annuity will provide an annual income of roughly $110,625 for the rest of the 65-year-old’s lifetime. Any remaining balance will be passed down to beneficiaries. Additionally, you can collect Social Security Benefits.

This annuity payout calculator is your first step toward a secure retirement.

Understanding Retirement with a 401k and Social Security

  1. 401k to IRA Annuity Conversion:
    • Process: Convert your 401k into an IRA annuity.
    • Annual Income: Approximately $110,625 annually.
    • Beneficiaries: The remaining balance is passed to beneficiaries.
  2. Social Security Benefits:
    • Monthly Income: Receive $2,500 monthly from Social Security.
  3. Medicare Benefits:
    • Start Age: Benefits begin at age 65.
  4. Required Minimum Distributions (RMDs):
  5. Long-Term Care Insurance:
  6. Supplemental Life Insurance:
    • Purpose: Life insurance protects the financial well-being of your spouse.

Financial Planning for Retirement

  • Budgeting: Plan your monthly expenses and adjust your lifestyle accordingly.
  • Investment Strategy: Consider safe investments to preserve capital.
  • Emergency Fund: Maintain a fund for unexpected expenses.
  • Tax Planning: Understand tax liabilities on withdrawals and benefits.

Conclusion

Retiring at 65 with a $1 million 401k and $2,500 monthly Social Security is feasible. By converting your 401k into an IRA annuity, you can secure a steady income, along with Social Security benefits. It’s important to plan for Medicare, RMDs, long-term care insurance, and supplemental life insurance. With proper planning, you can enjoy a comfortable retirement. Contact us today for a free quote.

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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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