Retire at 60 with 1.5 million
Can you retire at 60 with 1.5 million dollars? The fear that many people have is outliving their money in retirement.
To be honest with you the real problem with retirement is actually knowing if your efforts will pay off. You see there are a lot of rules to follow but all of them require that the stock market in the past will be sort of like the stock market in the future.
Maybe you have heard of the 4% rule. The 4% rule grew out of a study of the past history of the stock market and determined that as long as you never withdraw 4% of your principal you could live out your retirement days and still have some money in your retirement fund.
There is some controversy about whether or not the 4% rule still works. Some say it could be 5% and others say it is closer to 3%. So keep in mind as we answer the question of whether or not you can retire at 60 with 1.5 million dollars that this information is based on the 4% rule and the hope that the future will behave like the past, but no one can guarantee that.
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These ideas are based on my personal experience and opinion and should not be considered professional financial investment advice. Furthermore, the ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

- Is 1.5 million enough to retire at 60?
- How much should a 60 year old retire with?
- How much does the average person have saved for retirement at age 60?
- How much should a 60 year old have in 401k?
- How much wealth should I have at 60?
- What is the average 401K balance for a 65 year old?
- What age can you retire with 1.5 million?
- Can I retire off of 1.5 million?
- 5 steps to Prosperity
- About Dwight Scull
Is 1.5 million enough to retire at 60?
Using the 4% rule you can live on $60,000 a year on $1,500,000 dollars.
So then the question you need to ask is if you are able to live on $60,000 a year or not. I would suggest that you have your home paid off as that is your biggest expense. I know my mortgage is just under $2,000 a month for my home. That is $24,000 a year just in housing.
I also would encourage you to have as few bills as possible before you retire so that that $60,000 will go a lot further than it does for you today for example.
In addition to having things like your home, cars, credit cards, personal loans, and student loans paid off before you retire, I would encourage you to have 2 years of expenses in cash in a savings account and probably some of that in short-term bonds.
This allows you to leave your money invested when the stock market will dip during your retirement years. You can figure that the stock market will dip every 10 – 15 years for about a year or two. Having this cash reserve will allow you to breathe easier during stock market downturns.
How much should a 60 year old retire with?
Retiring at 60 with a nest egg of $1.5 million sounds like an achievable goal, but how much should you really have saved to ensure a comfortable retirement? It depends on your retirement goals and lifestyle expectations, as well as the investment returns you can expect in the future.
The earlier you start to save the easier it is. Generally speaking, you will make more money in your 40s than in your 20s, so while it is easy to say “save money” that may not be possible for everyone depending on their income and the cost of living where they live.

So what would it take to save $1.5 million?
If we assume you will make 8% returns (adjusting for inflation) then here is what you would need to save at each age to have $1.5 million in your retirement account:
20: $465 per month
25: $700 per month
30: $1,065 per month
35: $1,650 per month
40: $2,636 per month
45: $4,443 per month
50: $8,328 per month
You can do the same calculation using this retirement calculator here.
How much does the average person have saved for retirement at age 60?
The average 401k savings according to Vanguard for 55 – 64-year-olds is just over $232,000. The median savings is only $84,714. This means that 50% of the retirement accounts in Vanguard have less than $84,714 and 50% have more than that.
I don’t know about you but this makes me fearful. What will this mean when 50% of the 55 – 64-year-olds start to retire in the next 10 years?
If we apply the 4% rule on the average balance of $232,379 then one can live on only $9,295.16 a year without running out of money!!!
Luckily, social security will still be in place for these people, but because of low birth rates, the social security administration is stating that in the 2030’s they will need to cut everyone’s payments by 25%. What will happen to a person making under $10,000 a year on their retirement and then seeing a 25% pay cut on top of that? Add in inflation which could be low or high like it was starting in the mid-2022 and you have a recipe for disaster nationally unless something is done.
How much should a 60 year old have in 401k?
The average 60-year-old has around $200,000 in their 401k, but if you are a six-figure earner and you feel you will need $100,000 a year to live on you will need $2,500,000 if you don’t ever want to run out of money.
Now saving 2.5 million is no joke. So let’s look at different ways of getting around having to have this much money.
The four legs of retirement
You should have different sources of income coming to you in your retirement.
The first is probably from a 401k / 457 / 403b and an IRA. These retirement accounts are your first and should be your biggest set of income coming into you.
The second is from truly passive income like dividend payments for example.
The third would be social security payouts, but the younger you are the less you should count on this.
The last would be a source of income from working a part-time job or profits from a business you have created that is still paying you. If you want the best $7 you will pay to learn how to make money online I highly recommend Sadie Smiley’s methods. I wouldn’t be writing this without this $7 / month membership.
The more you have in your second – fourth sources (especially in the last one that you have the most control of) the more you can afford to not have $2.5 million in your 401k to retire on $100k a year.
How much wealth should I have at 60?
At age 60, many people want to retire and enjoy their golden years. But how much wealth should you have by this age? In general, experts suggest having at least $1.5 million saved up in order to have a comfortable retirement lifestyle. That said, everyone’s financial situation is unique and depends on several factors such as your income level, current debts, and desired lifestyle in retirement.
If you’re worried about whether or not you’ll have enough money saved up when the time comes for retirement, it’s important to assess your current finances and come up with a plan for the future. Make sure to factor in all of your expenses so that you can determine exactly how much money you will need upon reaching retirement age. Consider talking with a financial advisor who can help you create a plan for achieving your goals as well as identifying potential pitfalls along the way.
What is the average 401K balance for a 65 year old?
For those 65 years old and older the average balance in Vanguard is $255,151 and the median amount is $82,297.

5 steps to Prosperity
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What age can you retire with 1.5 million?
If you are able to consistently live on $60,000 a year right now then you can retire right now with that amount of money with some important caveats.
If you are under 59 1/2 and you are withdrawing pre-tax money from a traditional 401k or IRA then you will pay a 10% penalty on that money in addition to paying income tax on it.
If you are withdrawing post-tax money from a Roth 401k or Roth IRA then you can withdraw the principal tax-free and without penalty at any age.
I would also recommend paying off everything you can before retiring so that $60,000 a year can go much farther.
Can I retire off of 1.5 million?
Yes, and given the state of retirement funds in America today you would retire better than perhaps 80% of the country. Ideally, you would have everything major (home / cars / loans) paid off and any money you received from a pension or social security could be used for vacations or giving to others, or even making more money.
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About Dwight Scull
I have been married to my wonderful wife, Rebecca, who puts up with me since 1999. I am a proud father to my Gen Z, son, and daughter-in-law. Grandfather to my favorite granddaughter who was born in 2021.
I lost my mom, father-in-law, and 12 others in 2013 and was DEEPLY in debt. I started reading and watching all the financial info I could find.
I chipped away at my debt and went from a negative $105k net worth having one home paid off, no credit card debt, and saving/investing 45%+ of my gross salary.
I used these daily habits to lose 100 pounds and keep it off.
I believe that you can overcome any challenge you face if you just take small daily actions and be consistent with them. It is how you will be financially successful.
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