You would love to retire early, but you only have $750,000 saved for retirement. Is that really enough money to leave the workforce permanently?.
Depending on your cost of living in retirement and your other sources of retirement income—like Social Security benefits—$750,000 might be enough.
“Retiring with $750,000 at age 60 is doable for some—but only with strong planning, modest spending, and healthy doses of realism,” said Patrick Huey, a certified financial planner (CFP) at and owner of Victory Independent Planning.
Are you dreaming of saying goodbye to your 9-to-5 job at age 62 with $750,000 in savings? You’re not alone. Many Americans wonder if their nest egg is enough for an early retirement. The good news is that retiring at 62 with $750k is definitely possible – but like most things in life, it depends on several factors unique to your situation.
I put together this complete guide to help you figure out if this can work and, if it can, how to do it right.
Is $750,000 Enough for Retirement at 62?
The short answer Yes, it can be – but you’ll need to plan carefully.
While many financial experts suggest aiming for $1 million as the “dream nest egg,” the truth is that $750,000 can be more than enough in many states. Your ability to retire comfortably on this amount depends on:
- Your lifestyle expectations
- Where you plan to live
- Your health status and projected healthcare costs
- Additional income sources (Social Security, pensions, part-time work)
- Your investment strategy
- How long you expect to live in retirement
Let’s break down each of these factors to see if your $750k will be sufficient.
Understanding Your Retirement Income Needs
Assessing Your Lifestyle
Before making any decisions, you need to honestly evaluate your lifestyle expectations. Ask yourself:
- Do you prefer a simple, minimalist lifestyle or luxury living?
- How important is travel and entertainment in your retirement vision?
- Are you willing to downsize your home?
- What hobbies and activities will you pursue?
The Bureau of Labor Statistics says that households with a head of household aged 65 or more spend an average of $52,141 per year, which is $4,345 per month. Your spending could be more or less, depending on your situation.
Monthly Expenses to Consider
Make a detailed budget including:
- Housing (mortgage/rent, property taxes, insurance, maintenance)
- Utilities
- Food and groceries
- Transportation
- Healthcare premiums and out-of-pocket costs
- Entertainment and travel
- Emergency fund contributions
Don’t forget to factor in inflation! What costs $4,000 today might cost significantly more in 10 or 20 years.
How Long Will $750,000 Last in Retirement?
Using the common 4% withdrawal rule, a $750,000 portfolio would provide approximately $30,000 annually in income. At this withdrawal rate, your savings could theoretically last about 25 years before being depleted.
But this is a simplistic calculation. Your actual mileage will vary based on:
- Investment returns – Higher returns can extend your savings
- Inflation rates – Higher inflation erodes purchasing power faster
- Withdrawal adjustments – You might spend more in early retirement years
- Market volatility – Sequence of returns risk can impact longevity
Let’s look at some strategies to make your $750k last longer.
Strategies to Make $750k Work for Retirement at 62
1. Maximize Social Security Benefits
When you claim Social Security at age 60, your benefits will be permanently cut—about 30% less than if you waited until full retirement age, which is currently 67 for people born in 1960 or later.
Consider these options:
- Delay claiming if possible – Each year you delay beyond 62 increases your benefit by about 8%
- Have your spouse delay – If married, coordinate claiming strategies
- Work part-time while delaying benefits
2. Optimize Your Investment Strategy
Your investment approach should balance growth potential with income needs:
- Diversify your portfolio across stocks, bonds, and other assets
- Consider income-generating investments like dividend-paying stocks
- Adjust your asset allocation to become more conservative as you age
- Rebalance regularly to maintain your desired risk level
3. Consider Guaranteed Income Sources
Adding predictable income streams can provide peace of mind:
- Annuities – A $750,000 investment in an immediate annuity could generate between $51,000 to $62,000 annually for a 65-year-old, depending on factors like gender and interest rates
- Rental property income if you have real estate investments
- Part-time work in the early years of retirement
4. Plan for Healthcare Costs
Healthcare represents a significant retirement expense, especially before Medicare eligibility at 65:
- Bridge the gap until Medicare with ACA plans or COBRA
- Budget for Medicare premiums and supplemental coverage
- Consider long-term care insurance or self-insuring through savings
- Establish a Health Savings Account (HSA) if eligible before retirement
A retired couple might need between $184,000 to $383,000 to cover medical costs throughout retirement, depending on their Medicare coverage choices.
5. Consider Geographic Arbitrage
Where you live dramatically impacts how far your money will stretch:
- Downsize to a smaller home to reduce housing costs
- Relocate to a lower cost-of-living area or tax-friendly state
- Consider international retirement destinations where your dollars go further
Dynamic Withdrawal Strategies
Rather than sticking rigidly to the 4% rule, consider more flexible approaches:
- Start with a conservative withdrawal rate (perhaps 3-3.5%) and adjust annually
- Implement a “guardrail approach” – increase withdrawals in good market years, reduce in down years
- Create a retirement “bucket strategy” with different pools of money for different time horizons
Using a dynamic spending strategy could potentially increase your safe withdrawal rate from 4.3% to 5.0% according to some financial models.
Real-World Examples: Making $750k Work
Let’s look at two hypothetical scenarios:
Example 1: The Frugal Retiree
- Retirement savings: $750,000
- Social Security: $1,800/month ($21,600/year)
- Location: Moderate cost-of-living area
- Housing: Mortgage-free home
- Annual spending: $45,000
- Withdrawal from savings: $23,400/year (about 3.1% of portfolio)
- Result: Sustainable retirement with modest lifestyle
Example 2: The Active Retiree
- Retirement savings: $750,000
- Social Security: $2,200/month ($26,400/year)
- Part-time work: $12,000/year for first 5 years
- Location: Higher cost-of-living area
- Housing: Small mortgage remaining
- Annual spending: $65,000
- Withdrawal from savings: $26,600-$38,600/year (3.5-5.1% of portfolio)
- Result: May need to adjust spending or work longer part-time
Factors That Could Derail Your Retirement Plan
Be aware of these potential challenges:
- Inflation spikes – Higher-than-expected inflation can rapidly erode purchasing power
- Major health issues – Unexpected medical costs can drain savings
- Market downturns early in retirement (sequence of returns risk)
- Longevity risk – Living longer than anticipated
- Long-term care needs – Nursing home or assisted living costs
The Bottom Line: Yes, but with Careful Planning
Retiring at 62 with $750,000 is achievable, especially if you:
- Have modest lifestyle expectations
- Maximize Social Security and other income sources
- Implement smart withdrawal and investment strategies
- Consider part-time work in early retirement
- Maintain flexibility to adjust your plan as needed
Plans for retirement aren’t something that you do just once; they happen over and over again. Your nest egg will last as long as you need it to if you check on it and make changes to it often.
FAQs About Retiring at 62 With $750k
How much monthly income can I expect from $750,000 in savings?
Following the 4% rule, you could withdraw about $2,500 monthly ($30,000 annually) from your portfolio. Combined with Social Security, this could provide a moderate retirement income.
Should I take Social Security at 62 if I have $750,000 saved?
If possible, consider delaying Social Security beyond age 62. Each year you wait increases your benefit by approximately 8%, which can significantly boost your lifetime income.
What investment mix should I have for my $750,000 at age 62?
A common recommendation for early retirees is a moderate allocation of 50-60% stocks and 40-50% bonds, adjusted based on your risk tolerance and income needs.
Is $750,000 enough if I have health issues?
Health concerns may require additional savings. Consider purchasing supplemental insurance and setting aside funds specifically for healthcare expenses.
How does inflation affect my $750,000 retirement nest egg?
Inflation erodes purchasing power over time. At 3% annual inflation, $50,000 of expenses today will cost about $67,000 in 10 years and $90,000 in 20 years.
Retiring early with $750,000 requires thoughtful planning, but it’s definitely doable with the right approach. We recommend consulting with a financial advisor who can provide personalized guidance based on your specific situation. They can help you develop a comprehensive retirement plan that addresses your individual needs, goals, and concerns.
What retirement lifestyle are you hoping to achieve with your savings? Have you considered how location and healthcare costs might impact your retirement budget? The answers to these questions will help determine if $750k at age 62 is your ticket to a satisfying retirement.
Healthcare
One of the most important factors to consider for early retirement is how to handle healthcare.
“Healthcare is the biggest problem for people between the ages of 60 and 65. Since Medicare isn’t yet in place, private insurance or ACA plans can easily cost $10,000 to $20,000 a year for a couple in good health. This is often the biggest unknown cost before age 65,” Huey said.
To lower costs, shop around for healthcare to find the best deal for you and your spouse. You want to find the lowest-priced deal available for your needs until you qualify for Medicare at 65. Another thing you should know is that some of the subsidies that lower the cost of plans on the ACA exchange may end next year. This could make insurance premiums even more expensive.
Retirement Age
The length of your investment horizon has a big impact on whether youll have enough money in retirement. For example, the 4% rule says that retirees should take out 4% of their nest egg in the first year of retirement. After that, the rate should be adjusted annually for inflation because the assumption is that the retiree will stay retired for 20 years.
Therefore, if you decide to retire at 60 but expect to live to age 100 based on your family medical history, you may need to consider saving up more to make early retirement possible.
“Age is one of the most important variables. The earlier you retire, the longer your money needs to last. That extended horizon increases exposure to inflation, market volatility, and healthcare costs,” said Dennis Huergo, a CFP at Wealth Enhancement.