Can you retire on $800k [Updated May 2024] (2024)

1 min readLast updated May7,2024by Rachel Carey

Here’s everything you need to consider, from retirement income taxes to wealth-increasing tips, if you plan to retire with $800k.

Can you retire on $800k?

Yes, $800k provides a healthy nest egg that allows for annual withdrawals of around $32,000 from the age of 60 to 85, spanning 25 years. If $32,000 per year, or $2,667 per month, is sufficient to cover your retirement lifestyle, then $800k gives you an adequate buffer.

Initial SavingsAnnual SpendingEnough?Ending Balance after 25 yearsRequired Initial Savings

So with an initial $800k nest egg, you could potentially withdraw between $50k-70k per year over 25 years before depleting your retirement savings completely.

How long will $800k last in retirement?

An $800k nest egg can provide income for over 25 years in retirement if you limit annual withdrawals to around $32,000 (4% rule).

The duration will vary based on your age at retirement and actual spending levels each year. Assuming a 6% average annual return before taxes and 22% tax rate, see projections below:

Spending Per YearYears It Will LastTotal InterestTotal WithdrawalTotal Taxes

With $800k initially saved, you could withdraw $40k-60k annually and still have your portfolio last between 19-28 years. The higher your spending amount, the faster your savings get depleted. Assessing your specific retirement costs and life expectancy is key to determining withdrawal rate.

Consulting with an experienced financial advisor can provide tailored advice to assess your retirement needs based on your situation. Match with a financial advisor below.

Can I retire on $800k plus Social Security?

As we have established, retiring on $800k is entirely feasible. With the addition of Social Security benefits, the possibility of retiring with $800k becomes even more possible.

Adding in the current average annual Social Security benefit of $21,600 ($1,800 per month) increases your stable retirement income streams. This gives you more options when determining a withdrawal rate from your $800k savings balance to make it last.

For example, withdrawing $60,000 per year from your savings plus collecting $21,600 from Social Security provides $81,600 in annual retirement income. This combination allows your $800,000 savings to last for approximately 19 years without being fully depleted, based on earlier projections.

Remember Social Security benefits can be taxed, so it's important to optimize their combination with your personal savings in a tax-efficient manner. Meeting with a financial advisor can help determine the ideal personalized strategy for your $800k retirement account plus Social Security income situation.

What are the income taxes applicable to retirees with $800k?

Determining the tax implications of your retirement income is an important part of financial planning when you have $800,000 saved. While your yearly tax bill may not be excessive if you withdraw funds gradually over 20+ years, several key factors impact how much you will owe:

  • Your tax filing status (single, married filing jointly, etc)

  • Your state of residence

  • The source of retirement funds (pre-tax IRA, Roth IRA, etc)

  • Total annual retirement income amount

For example, if you retire at 65 and distribute the $800,000 evenly over 20 years, you would receive around $40,000 annually ($3,333 monthly). Assuming you file taxes as a single person, this income would place you in the 22% federal bracket plus applicable state taxes.

However, if the same $40,000 were from a Roth IRA that you contributed to post-tax during your working years, your withdrawals would be tax-free in retirement. Consulting a financial planner can help you optimize sources and taxation to maximum your long-term withdrawal rate.

Can you retire at 50 with $800k?

It is certainly possible to retire by age 50 with $800,000 in the bank, but you would need to adopt a relatively frugal lifestyle.

Using the 4% safe withdrawal rule, you could take out $32,000 per year, or $2,667 monthly. This should sustain you for 25 years until age 75. If you estimate living longer to 85 or 90, your annual withdrawals would need to be reduced accordingly.

While $32,000 annually is not an extravagant retirement income, strict budgeting and modest living expenses should allow you to leave your career early. Even if 50 proves unrealistic, you could likely achieve financial independence in your mid to late 50s.

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Three routes to increased savings

You may now want to figure out how to increase your savings, growing that $800,000 to $1 million or more to give yourself some additional breathing room. Some extra disposable income as a retiree. Our best recommendations are as follows:

  1. Adjust your monthly budget and save where possible – try to avoid regularly spending your money on unnecessary things that matter less to you, in the grand scheme of things, than a happy and comfortable retirement. Set achievable lifestyle and financial goals with proper consideration of your future self. Cut back where you can, and redirect that money where it can be better used.

  2. Build a varied portfolio of investments, seeking expert advice – a solid and stable investment portfolio comprising several types of securities could be very helpful to you, significantly boosting your savings and improving your retirement. If you don’t know where to begin, speak with an expert financial advisor to get started on your journey into investing.

  3. Find the right retirement and pension products – many different savings accounts and products are available that can be helpful to you as a retiree. Annuities, for example, convert your savings into a guaranteed monthly income for a given period. This period could be the rest of your life if you purchase an annuity with a lifetime income rider.

The bottom line

If you’ve managed to save $800k for retirement, this is a viable savings for your post-work life.

This will guarantee you a valuable degree of security and comfort in your later years, and it’s a figure many will never reach

For retirement planning advice and investment guidance, connecting with an experienced financial advisor is highly recommended. They can guide you through the daunting world of retirement planning and lead you to success. Get started with Unbiased and find your perfect match.

Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.

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Can you retire on $800k [Updated May 2024] (2024)


Can you retire on $800k [Updated May 2024]? ›

Yes, $800k provides a healthy nest egg that allows for annual withdrawals of around $32,000 from the age of 60 to 85, spanning 25 years.

Can I retire on 800k plus Social Security? ›

If you have substantial income from sources like a pension and Social Security, an $800,000 portfolio could last for many years. That's especially true if your expenses are low and you don't have significant health care expenses.

How much money do I need to retire in 2024? ›

News Releases
Amount expected to need to retire comfortably$1.46M$951K
Apr 2, 2024

How long will 750k last in retirement? ›

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.

Can you retire on 900k? ›

Yes, it is possible to retire very comfortably on $900k. This allows for an annual withdrawal of around $36,000 from age 60 to 85, covering 25 years. If $36,000 per year or $3,000 per month meets your lifestyle needs, $900k should be plenty for retirement.

How long will $800,000 last in retirement? ›

With $800k initially saved, you could withdraw $40k-60k annually and still have your portfolio last between 19-28 years. The higher your spending amount, the faster your savings get depleted. Assessing your specific retirement costs and life expectancy is key to determining withdrawal rate.

Can you retire on $700000 plus Social Security? ›

Retiring comfortably takes more than just money in the bank - it also takes proper planning. With $700,000 in personal savings, plus income from Social Security payments, you have a solid foundation to work with. However, there are still variables to consider.

How much money do most people retire with? ›

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

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


What is the best state to retire in 2024? ›

A: The best state to retire in 2024 is sunny Florida, according to WalletHub, thanks to its relative affordability and high quality of life for seniors. That's followed by Colorado, Virginia, and Delaware.

What is a good monthly retirement income? ›

Many retirees fall far short of that amount, but their savings may be supplemented with other forms of 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.

Is $750,000 enough to retire at 55? ›

If you want to retire at 55 with a retirement income of £39,000 a year, you'll need at least £780,000 at retirement if you want to withdraw 5%. However, if you're a bit more conservative over your expected returns and want to withdraw 4% a year, you'll need a pension pot worth at least £973,500.

Is 700k enough to retire at 65? ›

For some retirees, a $700,000 nest egg could support a long and secure retirement, while for others that sum might only last a few years. Effective retirement planning requires gaining an understanding of how key elements affect the length of time a given sum will last in retirement.

What percentage of retirees have a million dollars? ›

Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

Can I live off interest on a million dollars? ›

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

How much to retire comfortably at 65? ›

Key takeaways. There is no one-size-fits-all plan when it comes to how much you'll need to retire, but there are a few common benchmarks. Some strategies call for having 10 to 12 times your final working year's salary or specific multiples of your annual income that increase as you age.

Do millionaires get Social Security when they retire? ›

The amount a person receives in Social Security benefits is not directly affected by their current income or wealth. Therefore, even if someone is a millionaire or billionaire, they can still receive Social Security benefits if they have a qualifying work history.

What is the highest Social Security you can get when you retire? ›

The maximum Social Security check

Your maximum benefit if you file at age 62 – the youngest possible age – is $2,710 per month. Your maximum benefit if you file at full retirement age – between 66 and 67 – is $3,822 per month.

How long will 1 million last in retirement with Social Security? ›

Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.

Can I retire on $500,000 plus Social Security? ›

The short answer is yes, $500,000 is enough for many retirees. The question is how that will work out for you. With an income source like Social Security, modes spending, and a bit of good luck, this is feasible. And when two people in your household get Social Security or pension income, it's even easier.

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