With $4,000 in monthly costs, your retirement funding challenge calls for $48,000 annually. The 4% safe withdrawal guideline proposes that retirement savings can safely produce 4% income per year, adjusted upwards annually for inflation, with little risk of depletion over a 30-year retirement.
Lifestyle Choices: Your personal lifestyle and spending habits will also dictate whether $4000 feels sufficient. Overall, if you manage your expenses well and can maintain a comfortable lifestyle while saving for the future, $4000 a month can be viewed as a good income, especially without the burden of rent.
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.
Safe Withdrawal Rate
Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years. If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.
$4,000 a month is how much an hour? If you make $4,000 a month, your hourly salary would be $23.08.
Des Moines, Iowa
For retirees looking to live in a big city on a small budget, Des Moines is a good choice. Affordability is just one reason the Milken Institute ranked the state capital among the 100 large U.S. metro areas for successful aging.
But much larger Social Security payments are possible if you do everything you can to maximize your benefit. In fact, if you play your cards right and are fortunate enough to qualify, it's entirely possible that the maximum Social Security benefit will jump to more than $4,000 a month starting in 2022.
The cheapest retirement state in 2025 is West Virginia, where you'll need an estimated $712,913 in savings, and an annual budget of $50,954, to retire in comfort, according to new data released this week by GOBankingRates, the personal finance site.
A plurality of older Americans, 40.2 percent, only receive income from Social Security in retirement. Roughly equal numbers of older Americans receive income from defined benefit pensions as from defined contribution plans.
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.
Bottom Line. 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.
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.