With $640k in an IRA and $1,900 in Social Security, Can I Retire at 65?

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Eric Reed

Thu, Mar 13, 2025, 5:30 AM 7 min read

How aged are you?

When it comes to evaluating your status options, this mightiness beryllium the azygous astir important question successful finance. Your property volition find however adjacent you are to needing this wealth which, successful turn, volition alteration astir everything astir however you measure your taxes, returns and different options.

For example, accidental that you person $640,000 successful an IRA and tin expect astir $1,900 per period successful Social Security benefits. Is this capable to discontinue connected astatine 65? The reply is… it depends.

A fiscal advisor tin assistance you make a status program suited for your wants and needs. This instrumentality tin lucifer you with up to 3 fiduciary fiscal advisors for free.

First, let’s look astatine your imaginable net pre-taxes.

Say that you’re presently 65 and privation to get retired of the bureau today. At property 67, we would presume a 4% yearly withdrawal from your IRA, truthful the equivalent mightiness beryllium a 3.7% withdrawal astatine property 65. Using those assumptions, your income mightiness be:

Benefits – $22,800 per year
Portfolio, 3.7% Withdrawals – $23,680 per year
Total – $46,480 per year, ostentation adjusted

Or you mightiness put successful an annuity. In that case, based connected a typical annuity, your income mightiness be:

Benefits – $22,800 per year
Annuity – $49,476 per year
Total – $72,276 per year, partially non-inflation adjusted

The annuity tin make importantly much income, but beryllium careful. You volition request to put a important information of this wealth arsenic a hedge against inflation, different your spending powerfulness volition driblet importantly implicit your retirement. Consider speaking with a fiscal advisor astir your concern options and however they could assistance enactment your retirement.

On the different hand, accidental that you’re presently 55 and conscionable privation to program for a somewhat aboriginal retirement. Again, let’s presume a 3.7% withdrawal rate, but we besides request to relationship for ongoing portfolio returns and contributions. That introduces galore much assumptions.

For example, accidental that you lend 10% of a median $75,000 income into a portfolio generating a median 8% complaint of return. You mightiness expect:

Benefits – $22,800 per year
Portfolio astatine 65 – $1.49 million
Portfolio 3.7% Withdrawals – $55,130 per year
Total – $77,930 per year, ostentation adjusted

Or, with a typical annuity your income mightiness be:

Benefits – $22,800 per year
Annuity – $85,956 per year
Total – $108,756, partially non-inflation adjusted

Things tin get analyzable erstwhile you relationship for inflation, taxes and your expected lifespan. A fiscal advisor tin assistance you bash the calculations for your portfolio.