Can I Retire At 60 With £300k? [Calculated] (2024)

Posted by Sam Hodgson | Dec 1, 2023 | Guides | 0

£300k in a pension isn’t a huge amount to retire on at the fairly young age of 60, but it’s possible for certain lifestyles depending on how your pension fund performs while you’re retired and how much you need to live on.

In this article we breakdown a few scenarios to see how far £300k would get you if you retired at 60.


  • Can I Retire At 60 With £300k?
  • Understanding Your Retirement Needs
  • The Role of the State Pension
  • Planning for a Comfortable Retirement
  • The Value of Using a Financial Adviser for Retirement Planning

Can I Retire At 60 With £300k?

Yes, you can. As long as you live strictly within your means and assuming certain considerations, such as no significant unexpected costs and no outstanding debts.

This is how it could look in practice:

Let’s say, for example, you have £300k in a pension after taking your tax-free cash, you have no outstanding debts or mortgage to pay off, and you’re entitled to the full state pension at age 67 (or 68 from 2044).

For this example, let’s say you take £1,500 from your pension per month.

Not a huge amount to live off. So, you’ll need to be comfortable living at this income level, and this would be nearly impossible with rent to pay or any outstanding mortgage.

Nonetheless, at age 68 your state pension would kick in (as long as you’ve made enough NI contributions throughout your working life – you can check here), and your monthly income would be topped up to £2,384.86, (+884.86 from the state pension) gross.

This would then be taxed down to about £2,116.40 per month, assuming you are a basic rate tax payer (i.e., you don’t have any other sources of income).

Therefore, you may want to take a large amount from your pension earlier on, and then taper it down as your state pension kicks in.

This is where the value of working with a financial planner comes in – they can talk you through the most tax-efficient and realistic retirement plan, so you have peace of mind and clarity on your situation.

In terms of that £1,500 monthly income solely from your private pensions – it would be projected to last until age 84, assuming a 5% annual return on your pension investments while you draw down. If you achieve an 8% annual return, it could potentially last indefinitely. However, with a 2% annual return, it may run out by age 78.

So, you can see how delicate your retirement would be at this level, and you might even want to consider an annuity that increases with inflation, for example, to give you some additional security. Your state pension will be ‘triple locked’ against inflation, average earnings, or 2.5% (whichever is higher), so you do have that security for as long as the triple lock stays in place.

Get a glimpse into what professional retirement planning looks like in practice, and the technology behind it, with our example client case study in the video below. Taken from our latest SIPP Advice Retirement Masterclass.

Related: Sign up for our next free retirement masterclass to learn from the experts.

Can I Retire At 60 With £300k? [Calculated] (1)

Can I Retire At 60 With £300k? [Calculated] (2)

Understanding Your Retirement Needs

Before determining whether £300,000 is sufficient, it’s essential to assess your retirement needs. Your financial requirements during retirement depend on various factors:

  • Living Expenses: Start by estimating your basic living expenses, including housing, utilities, groceries, and transportation.
  • Healthcare Costs: Consider potential healthcare expenses, including insurance premiums and out-of-pocket costs.
  • Lifestyle Choices: Think about your desired lifestyle during retirement. Do you plan to travel, pursue hobbies, or dine out frequently? These choices will impact your budget.
  • Inflation: Account for the impact of inflation on your expenses over time. What costs £1,000 today may cost significantly more in the future.

The Role of the State Pension

The UK state pension is a valuable source of income during retirement. As of the 2023/24 tax year, the full state pension is £203.85 per week, which amounts to approximately £10,603.20 per year.

This provides a significant boost to your retirement income, potentially making it easier to achieve a comfortable standard of living.

Related: The best SIPP providers compared.

Planning for a Comfortable Retirement

To retire comfortably with £300,000, it’s essential to adopt a strategic approach to financial planning:

  • Budgeting: Carefully budget your expenses to ensure your income aligns with your financial goals. Prioritise essential needs while managing discretionary spending.
  • Investment Strategy: Diversify your investment portfolio to balance risk and potential returns. Consult with a financial adviser to create a well-rounded investment strategy.
  • Regular Review: Continually monitor and adjust your retirement plan as circ*mstances change. Regular reviews help ensure your financial goals remain achievable.
  • Emergency Fund: Maintain an emergency fund to cover unexpected expenses, preventing the need to tap into your retirement savings.

In summary, while retiring with £300,000 is possible, careful planning, budgeting, and strategic investments are essential. Factor in the state pension, consider different investment scenarios, and understand the tax implications to make informed decisions about your retirement income.

You ultimately have three choices if you are approaching retirement in this situation:

  1. Hope that you have enough and wing it.
  2. Build your own financial forecast incorporating your current and expected future situation into a spreadsheet and work out how much income to take.
  3. Get professional advice to work with you to build a sustainable plan that gives you peace of mind, and ensure your pension funds are invested suitably for you to draw income from.

We recommend seeking guidance from financial professionals to create a robust retirement plan tailored to your specific needs, ensuring a secure and comfortable retirement.

Related: Do I Need a Financial Advisor For My Pension?

The Value of Using a Financial Adviser for Retirement Planning

Retirement planning is a complex and critical financial undertaking that can greatly benefit from the expertise of a qualified financial adviser. Here’s how a financial adviser can add significant value to your retirement planning:

  1. Investment Advice

Financial advisers can help you determine the right mix of investments (stocks, bonds, property, etc.) based on your risk tolerance and financial goals.

They ensure your investments are diversified to spread risk and optimize returns.

They also help you navigate market fluctuations, ensuring your investments align with your long-term objectives.

  1. Tax Planning

Advisers identify tax-efficient investment strategies that can minimise your tax liability, allowing your retirement savings to grow more effectively.

They also guide you on utilising tax-advantaged accounts like ISAs or SIPPs to maximise your tax benefits during retirement.

  1. Cash Flow Planning

Financial advisers assist in creating a realistic budget for retirement, ensuring your income and expenses align with your desired lifestyle.

They also help establish and maintain an emergency fund to cover unexpected expenses without depleting your retirement savings.

  1. Income and Expenditure Analysis

Advisers conduct a comprehensive review of your income sources and expenses, helping you understand your financial position during retirement.

They also use financial planning software to project your financial situation over time, considering various scenarios and potential adjustments.

  1. Inheritance Tax (IHT) Planning

Advisers can help you develop strategies to minimise the impact of inheritance tax on your estate, ensuring that your loved ones receive the intended inheritance. They can also provide guidance on creating trusts and implementing gifting strategies to optimise your estate’s tax efficiency.

6. Peace of Mind

A financial adviser’s expertise provides peace of mind, knowing that your retirement plan is backed by professional knowledge and experience. You ultimately gain confidence in your financial decisions and the ability to enjoy a comfortable retirement.

Want to book a free initial call with a financial planner to see if advice is right for you? Book a consultation here.

Or, sign up for our free retirement masterclass to learn from the experts.

Can I Retire At 60 With £300k? [Calculated] (2024)


Can I Retire At 60 With £300k? [Calculated]? ›

If you've managed to save $300k successfully, there's a good chance you'll be able to retire comfortably, though you will have to make some compromises and consider your plans carefully if you want to make that your final figure.

Can I retire at 60 with $300,000? ›

The short answer to this question is, “Yes, provided you are prepared to accept a modest standard of living.” To get an an idea of what a 60-year-old individual with a $300,000 nest egg faces, our list of factors to check includes estimates of their income, before and after starting to receive Social Security, as well ...

Can I retire at 60 with 300k? ›

Yes, you can.

Let's say, for example, you have £300k in a pension after taking your tax-free cash, you have no outstanding debts or mortgage to pay off, and you're entitled to the full state pension at age 67 (or 68 from 2044). For this example, let's say you take £1,500 from your pension per month.

How long will $300,000 last for retirement? ›

How long will $300,000 last in retirement? If you have $300,000 and withdraw 4% per year, that number could last you roughly 25 years. That's $12,000, which is not enough to live on its own unless you have additional income like Social Security and own your own place. Luckily, that $300,000 can go up if you invest it.

Can I retire at 62 with 300k in my 401k? ›

$300k is sufficient for many people to retire, in part because you can avoid some of the biggest tax hurdles that may arise for more wealthy retirees. That said, whether or not it's enough depends on your circ*mstances (spending levels, location, health, and more).

How to retire at 60 with no money? ›

Get a Part-Time Job or Side Hustle. If you're contemplating retirement with no savings, then you may need to find ways to make more money. Getting a part-time job or starting a side hustle are two ways to earn money in your spare time without being locked into a full-time position.

How much do my wife and I need to retire at 60? ›

It's recommended that most couples save at least seven to eight times their combined annual income to retire comfortably.

How much money does the average 65 year old retire with? ›

The average 401(k) balance by age
AgeAverage 401(k)Median 401(k)
3 more rows

Is retiring at 60 too early? ›

The traditional age of retirement is 65, but it's possible to retire at age 60 with planning. Obstacles to early retirement include lack of access to Social Security benefits and Medicare. However, on the plus side 60-year-olds can withdraw from retirement accounts without penalty.

How much do most people retire with? ›

What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

What is a good monthly retirement income? ›

Average Monthly Retirement Income

According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.

How much should I have in my 401k at 60? ›

Ages 55-64

The average 401(k) balance reflects the fact that many people have saved quite a bit more than $207,874 . Alas, the median balance reveals that many people have saved quite a bit less. Fidelity says by age 60 you should have eight times your current salary saved up.

What is the average 401k balance for a 65 year old? ›


Can I retire at 55 with 300k? ›

On average for a comfortable retirement, an individual will spend £43,100 a year, whilst the average couple in retirement spends £59,000 a year. This means if you retire at 55 with £300k, an individual will run out of funds in approximately 7 years, and a couple in 5 years. So, on paper, it doesn't look like enough.

Is 300k a lot of money? ›

Although $300,000 is a lot compared to the median household income in the United States of ~$76,000 in 2023, it's not an outrageous sum of money. Once you pay taxes and look at the realistic income statement I've put together for this article you'll see the income is reasonable.

Can I retire at 62 with $400,000 in 401k? ›

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.

Can I retire at 60 with $400,000? ›

You can retire a little early on $400,000, but it won't be easy. If you have the option of working and saving for a few more years, it will give you a significantly more comfortable retirement.

Can I retire at 60 and get Social Security? ›

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

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