Is $750k Enough to Retire? The Sweet Spot for Early Exit

TL;DR

$750k is enough for a comfortable middle-class retirement at age 60-65. At 4% withdrawal, it provides $30,000/year. Add Social Security ($22k average) and you have $52k total—enough for a good life in most of America. For early retirees (under 60), $750k is ideal for Barista FIRE (part-time work + benefits).

The Verdict

Yes, $750,000 is enough to retire for most people. It puts you ahead of approximately 90% of American households approaching retirement. More importantly, $750k hits a sweet spot where the math actually works without requiring extreme frugality.

THE $750K ADVANTAGE

$750k is 50% more than $500k but only requires 50% of what "Fat FIRE" demands ($1.5M+).

It's the Goldilocks zone: enough for comfort, achievable for disciplined savers.

The key factors that determine if $750k works for you: retirement age (healthcare costs before 65), location (LCOL vs HCOL), and whether you want any supplemental income.

The Math: What $750k Provides

Withdrawal Rate	Annual Income	Monthly Income	Best For
3.0%	$22,500	$1,875	Very early retirees (50+ year horizon)
3.5%	$26,250	$2,188	Early retirees (age 50-55)
4.0%	$30,000	$2,500	Traditional retirement (30-year horizon)
4.5%	$33,750	$2,813	Late retirees with strong Social Security

Combined with Social Security

Social Security	$750k at 4%	Total Annual	Total Monthly
$18,000 (early claim at 62)	$30,000	$48,000	$4,000
$22,800 (average at 67)	$30,000	$52,800	$4,400
$32,000 (delayed to 70)	$30,000	$62,000	$5,167
$44,800 (couple, both average)	$30,000	$74,800	$6,233

Notice that $52,800/year ($4,400/month) is solidly middle-class income. For a couple with both partners receiving Social Security, $74,800 provides considerable comfort.

$750k by Retirement Age

$750k at Age 50

Verdict: Possible with Barista FIRE

The challenge: 15 years without Medicare, 12-20 years without Social Security, and a 45+ year time horizon requiring 3-3.5% withdrawal ($22.5-26k/year).

The path: Barista FIRE is ideal. Part-time work at Starbucks, Costco, or similar provides $15-20k income + healthcare benefits. Combined with $22.5k from $750k (3% safe rate), you have $37-42k while preserving the portfolio until Social Security.

$750k at Age 55

Verdict: Workable with Planning

The math: 10 years to Medicare, 7-15 years to Social Security. At 3.5% ($26,250) plus managing ACA subsidies carefully, it's tight but doable in LCOL areas.

Strategy: Keep MAGI under $64,000 for ACA subsidies. Budget $12-15k for healthcare until 65. Consider part-time work for first 5-7 years. Once Social Security starts, the pressure releases.

$750k at Age 60

Verdict: Good

The advantage: Only 5 years to Medicare, 2-7 years to Social Security. Healthcare is the main wildcard, but it's a shorter bridge to cross.

The math: $30,000/year from $750k covers expenses until 62-65. Then add $18-32k Social Security (depending on claim age) for $48-62k total. Comfortable in most of America.

$750k at Age 65

Verdict: Comfortable

The sweet spot: Medicare eliminates healthcare uncertainty. Social Security is available (even if delaying to 70). A 30-year horizon allows the full 4%.

The math: $30,000 + $22,800 (average SS) = $52,800/year. After Medicare costs (~$5k), you have $47,800 for living—solidly middle-class anywhere outside major metros.

Model your scenarios

See exactly how $750k works at different ages and withdrawal rates.

4% Rule Calculator

Why $750k is the "Sweet Spot"

Financial planners often call $750k the "Goldilocks number" for middle-class retirement. Here's why:

1. The math actually works

Unlike $500k (which requires significant compromises), $750k provides enough cushion for typical expenses. $2,500/month from the portfolio plus $1,900 Social Security = $4,400/month—a real budget you can live on comfortably.

2. Achievable through disciplined saving

Saving $750k over a 30-year career requires roughly $750/month with 7% returns, or about $9,000/year. That's aggressive but achievable for middle-income earners who start early and stay consistent.

3. Buffer for surprises

At $750k, you have room for unexpected expenses—a new roof, car replacement, helping family—without derailing your entire retirement. $500k leaves much less margin.

4. Location flexibility

$750k opens up MCOL areas that $500k can't comfortably reach. You're not limited to the cheapest towns—mid-sized cities like Raleigh, Tucson, or Chattanooga become viable.

Healthcare Strategy

Before 65: ACA optimization

$750k ACA Strategy

With $750k, you have more control over your MAGI than with $500k. Key thresholds for 2026:

• $25,000 MAGI: Maximum subsidies (~$100-200/month premium)
• $45,000 MAGI: Good subsidies (~$300-500/month premium)
• $64,000 MAGI (single): Subsidy cliff if enhanced credits expire

Strategy: Withdraw from taxable accounts first, use Roth conversions carefully, harvest losses to offset gains. Keep MAGI in the "sweet spot" for your area.

After 65: Medicare reality

Medicare Part B (2026): ~$185/month
Part D prescription: ~$35-50/month
Medigap supplement: ~$100-200/month
Total: ~$350-435/month ($4,200-5,220/year)

This is manageable within the $750k budget and far more predictable than pre-65 costs.

$750k and Barista FIRE

For early retirees (50-60), $750k is often considered the ideal Barista FIRE target. Here's why the combination works so well:

BARISTA FIRE + $750K

$750k at 3.5% = $26,250/year from portfolio

Part-time work (20 hrs/wk) = $20,000/year income

Employer healthcare = $0-$200/month vs $600-1,500

Total income = $46,250/year + healthcare solved

The key insight: working 20 hours/week at Starbucks, Costco, or REI provides more than just income—it solves the healthcare problem entirely while you wait for Medicare at 65.

Calculate your Barista FIRE number

See how part-time income changes your retirement equation.

Barista FIRE Calculator

$750k vs Other Amounts

Amount	4% Annual	+ Avg SS	Lifestyle
$500,000	$20,000	$42,800	Modest—LCOL areas only
$750,000	$30,000	$52,800	Comfortable—most of US
$1,000,000	$40,000	$62,800	Comfortable—anywhere
$1,500,000	$60,000	$82,800	Upper-middle class
$2,000,000	$80,000	$102,800	Very comfortable

The jump from $500k to $750k adds $10,000/year—that's $833/month extra. For many, this difference moves them from "surviving" to "living." The jump from $750k to $1M adds another $10,000 but with diminishing lifestyle returns.

Frequently Asked Questions

Is $750k enough to retire at 55?

It's possible but requires planning. At 3.5% withdrawal (for 40+ year horizon), $750k provides $26,250/year. Without Social Security until 62-70 and with pre-Medicare healthcare costs ($12-18k/year), you need to keep total expenses under $40k in a low-cost area, or supplement with Barista FIRE income.

Is $750k enough to retire at 60?

Yes, with careful planning. At 4% withdrawal, $750k provides $30,000/year. Add Social Security at 62 (~$18k early) and you have $48k total. Budget $15k/year for healthcare until Medicare at 65, leaving $33k for other expenses. This works well in LCOL areas.

Is $750k enough to retire at 65?

Comfortably so for most people. $750k at 4% provides $30,000/year. Add average Social Security ($22,800) and you have $52,800 total. With Medicare handling healthcare (~$5k/year), you have $47k+ for living expenses—solidly middle-class in most of America.

How long will $750k last in retirement?

At 4% withdrawal ($30k/year), $750k has a 95% chance of lasting 30+ years based on historical data. At 3.5% ($26,250/year), it should last 40+ years. The key is having other income like Social Security to reduce dependence on the portfolio.

What is the 4% rule for $750k?

The 4% rule means withdrawing 4% in year one ($30,000 from $750k), then adjusting for inflation each year. Year 2 at 3% inflation would be $30,900. This provides a steady, inflation-adjusted income stream that historically lasts 30+ years.

Can a couple retire on $750k?

Yes, especially at 65+. A couple with $750k at 4% ($30k) plus dual Social Security (average $44k combined) has $74k total income. With Medicare for both, healthcare costs are manageable (~$10k/year). This supports a comfortable middle-class retirement.

Is $750k the Barista FIRE sweet spot?

Many consider $750k ideal for Barista FIRE. At 4%, it provides $30k/year base income. Add $20-25k from part-time work (with benefits) and you have $50-55k income with employer healthcare. This eliminates the pre-65 healthcare wildcard.

Should I wait to retire with $1M instead of $750k?

The extra $250k provides $10k more annual income. If that $10k is the difference between comfortable and struggling, it's worth waiting. But if you're already comfortable at $750k, working longer has diminishing returns. Use calculators to model your specific situation.

$750k vs $500k - what's the real difference?

The extra $250k provides $10,000 more per year at 4% ($30k vs $20k). That's meaningful: $833 extra per month. At $750k, you can cover most emergencies and have more location flexibility. At $500k, you're more constrained to LCOL areas.

What lifestyle can I afford retiring on $750k?

With $750k + Social Security (~$52k total at 65), you can afford: $1,500/month housing, $500/month food, $400/month healthcare, $200/month transportation, $300/month utilities, and $1,400/month discretionary. That's a comfortable but not lavish middle-class lifestyle.

BOTTOM LINE

$750k is the sweet spot for middle-class retirement. It provides enough to live comfortably ($52k+ with Social Security), handles most emergencies, and works in most of America. For early retirees, it's the ideal Barista FIRE target—enough that part-time work completes the picture without feeling like a sacrifice.