Retirement advice can be based on numbers and rules of thumb. You might hear that to retire, you will need $2 million or more. The amount you will need to retire depends on your monthly income and sources of retirement income.
The majority of people don’t save $1 million, so it might be useful to look at what it would take to retire with $500k.
Anyone approaching retirement must make a decision. Do you want to work longer in order to save money, or do you want to retire comfortably?
Yes, $500k Could Be Enough
Yes, $500,000 is enough for some retirees. How does that work? This is possible with a steady income source such as Social Security, low spending and some luck. It’s even easier if you have two people living in your household who receive Social Security income or pension income.
More money means more security and options. It’s wise to look at your options and run some numbers when you are ready to quit working. It is important to first understand the amount you will need each year. This will allow you to determine if you have enough resources to support your spending.
Let’s take a look at an example to show you how it works.