Can you retire on $300k? [Updated May 2024] (2024)

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.

You should consider:

How long will $300k last in retirement?

Let's say your annual retirement spending is $20,000, equivalent to $1,666 monthly. In this scenario, $300,000 can last for roughly 26 years.

The length of time that you can make $300,000 last as a retiree is best determined by looking at your intended retirement lifestyle and likely monthly and annual outgoings.

Assuming an average annual return of 6% before taxes and a 22%federal marginal tax rate, the table below offers a detailed breakdown of how long $300k can last across various annual spending scenarios:

Can you retire with $300k and Social Security?

As mentioned, if you have $300,000 in savings, you are likely in a comfortable position for retirement if you plan appropriately. Adding Social Security benefits here can only help bolster your retirement income and make retiring on $300k even more accessible.

According to theUS Government, in 2023, the average monthly Social Security benefit for retired workers was $1,905. However, the amount received varies from person to person.

It’s important to note that while you can retire at any age, your full benefits only become available once you reach “full retirement age.”

For those born during or after 1960, this is 67. You can start receiving Social Security retirement benefits as early as 62. However, these will be reduced.

How much tax you pay on Social Security benefits will depend on your home state, with some states opting not to tax the benefit whatsoever.

How much money do you need to retire?

Financial advisors often recommend having savings equivalent to 10-12 times your current income by the time you retire, providing a reasonable level of confidence in your financial security.

However, this varies depending on how much you intend to spend.

Let's say you want to retire at 60 with a life expectancy of 85; you'll need to cover 25 years. To guarantee $20,000 yearly ($1,666 monthly) over 25 years, you'll need roughly $327,403 in retirement savings.

Consideringan average annual return of 6% before taxesand the Federal Reserve’s 2% inflation target, the table below provides a breakdown of the initial savings required, as well as the total interest earned for various spending scenarios.

It's important to note that individual financial circ*mstances can vary significantly, making answering the question "How much money do I need to retire" a bit difficult. Factors like healthcare costs, inflation, and unexpected expenses play crucial roles in long-term financial planning.

If you want some guidance on how to plan for your financial future, talking to an expert is your best bet. At Unbiased, we connect people with expert, trusted financial advisors to help them plan for retirement. Find yourbest financial advisorand get afree first consultation here.

Can I retire at 50 with $300k?

Most of us have, at one time or another, considered retiring early. But is it viable for you to retire at 50 on $300,000? The answer depends on how much you’d be comfortable receiving as a monthly income.

Let’s walk through the scenario.

With $300,000 planned for your use as a retiree, a retirement age of 50, and an anticipated life expectancy of 85 years, you need that money to last you 35 years. This should mean that your yearly income is around $8,571, and your monthly payment is around $714.

Though $714 might be enough for some, it won’t make ends meet for others.

If you’re doing the math based on your unique circ*mstances, don’t forget to factor in:

What are the income taxes applicable to retirees with $300k?

Retirement income taxes on $300k aren’t massively high, especially if you’re spreading distributions of that money across 20–25 years or more.

Without adding complexities like inflation and the fluctuating money market into the mix, $300,000 over 25 years of payments equates to $12,000 a year. This would put you in the second-lowest federal income tax bracket, meaning you’d be charged a marginal tax rate of 12%. You also need to account for:

What is the average retirement saving among working-age Americans?

A study from Northwestern Mutual found that the average amount held in a retirement account is just $88,400.

However, the same study found that the typical worker believes they need $1.46 million to retire comfortably, resulting in a savings gap of $1.37 million for the average American.

While it’s clear that most Americans don’t have enough saved for retirement, it’s worth noting that the average savings amount will differ from source to source, primarily due to the following three factors:

Four tips for increasing your savings

There’s every chance you’d like to keep growing and increasing your retirement savings pot.

You may even think of aspects of retirement planning you hadn’t yet considered, and you may now have to re-adjust accordingly. If you’re in that position, wondering how to increase your savings, here are four tips to consider:

Get expert retirement advice

You're already in a good position if you’re putting $300k towards your retirement. If you have some time to further increase this amount between now and your later years of rest and relaxation, you’re in an even better position. You can do much to raise that $300,000 figure, even in a year or two.

For some advice on how to do just that or any other aspect of retirement planning that you might need help with, anexperienced financial advisoris well-placed to assist. Matching with a financial advisor perfectly suited to meet your needs is just a few clicks away.Get started here.

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