Retiring on $700k is feasible, especially if spending is kept below $40,000 per year. The longevity of your savings depends on factors like annual withdrawals, investment returns, and tax considerations. Social Security benefits can supplement savings, potentially increasing retirement comfort.
And by age 60, you should have six to 11 times your salary saved in order to be considered on track for retirement. For example, a 35-year-old earning $60,000 would be on track if she's saved about $60,000 to $90,000.
According to the Federal Reserve, Americans in that demographic have a median retirement account balance of just $185,000, as of 2022. Even the average savings balance among that age group, which is skewed higher due to a few really wealthy savers, is only about $538,000. So, $750,000 would put you in a great spot.
Can you retire on $800k? Yes, $800k provides a healthy nest egg that allows for annual withdrawals of around $60,000 or below, spanning 20 years. If this is sufficient to cover your retirement lifestyle, then $800k gives you an adequate buffer.
Many Americans target $1 million as their “dream nest egg” for retirement, but the truth is that in many states, even $750,000 can be more than enough. Although your longevity and your lifestyle can greatly impact how much you'll need for a successful retirement, the state in which you live can also play a big role.
With $800,000 in savings, you can probably cover $4,000 in monthly living costs. However, retirement accounts alone cannot safely sustain that spending for a 25- or 30-year retirement.
By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.
Absolutely. While many aim for a $1 million retirement fund, $750,000 can suffice in numerous states. The adequacy of this amount hinges on your expected lifespan, lifestyle, and the cost of living in your chosen state. Thus, a comfortable retirement is achievable with $750,000, depending on these factors.
Under the 4% method, investment advisors suggest that you plan on drawing down 4% of your retirement account each year. With a $750,000 portfolio, that would give you $30,000 per year in income. At that rate of withdrawal, your portfolio would last 25 years before hitting zero.
Americans in their 60s have an average retirement savings balance of $1,197,814; the median is $605,329, giving some retirement millionaire status. Your 60s are a great time to review your retirement savings goals and make sure they reflect your current lifestyle as retirement approaches.
Say that you plan to retire at 62 with $600,000 saved. You expect to withdraw 4% each year, starting with a $24,000 withdrawal in Year One. Your money earns a 5% annual rate of return while inflation stays at 2.9%. Based on those numbers, $600,000 would be enough to last you 30 years in retirement.
The ideal monthly retirement income for a couple differs for everyone. It depends on your personal preferences, past accomplishments, and retirement plans. Some valuable perspective can be found in the 2022 US Census Bureau's median income for couples 65 and over: $76,490 annually or about $6,374 monthly.
Still, financial experts often recommend having at least eight times your annual salary saved by this age to maintain your current lifestyle. If earning a current salary of $100,000 a year, you should aim for at least $800,000 to $1 million in retirement savings by 60.
With $700,000 saved and an average annual return of 10–12%, you could have between $70,000 and $84,000 per year. If returns are lower, say 8%, you'll only have $56,000 and may need to dip into your principal.
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
How much does a $700,000 annuity pay per month? As of January 2025, with a $700,000 annuity, you'll get an immediate payment of $4,200 monthly starting at age 60, $4,625 monthly at age 65, or $4,988 monthly at age 70.
Retiring with $750,000 in a Roth IRA and $1,800 in monthly Social Security is entirely possible, but that doesn't mean that your work is over. Your lifestyle in retirement will depend entirely on how you manage this portfolio.
Pre-planning helps
ASFA estimates people who want a comfortable retirement need $690,000 for a couple, and $595,000 for a single person when they leave work, assuming they also receive a partial age pension from the federal government. For people who are happy to have a modest lifestyle, this figure is $100,000.
If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.
Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
For example, if you plan to travel frequently in retirement, you may want to aim for 90% to 100% of your pre-retirement income. On the other hand, if you plan to pay off your mortgage before you retire or downsize your living situation, you may be able to live comfortably on less than 80%.
Just 16% of retirees say they have more than $1 million saved, including all personal savings and assets, according to the recent CNBC Your Money retirement survey conducted with SurveyMonkey. In fact, among those currently saving for retirement, 57% say the amount they're hoping to save is less than $1 million.