Can I Retire at 55 with $600k?
Difficult alone
Difficult without additional income. $600k at 3.5% provides only $21k/year - below what most people need. Consider Barista FIRE (part-time work), waiting longer, or finding ways to increase savings.
Retiring at 55 with $600k alone is challenging for most people. The math is straightforward: $600k at a safe withdrawal rate provides limited annual income that must cover all expenses including healthcare for a decade before Medicare. However, $600k can absolutely be part of a viable early retirement strategy when combined with other approaches.
Withdrawal Rate Analysis
How much annual income does this savings level provide at different withdrawal rates?
| Rate | Annual Income | Monthly |
|---|---|---|
| 3% | $18,000 | $1,500 |
| 3.5%Recommended | $21,000 | $1,750 |
| 4% | $24,000 | $2,000 |
Based on 40-year retirement horizon. Lower rates provide more safety margin.
Healthcare: The 55-65 Gap
Healthcare is often the biggest challenge for early retirees. Here's how it affects this savings level:
10-Year Healthcare Cost
$180k - $252k
Percent of Portfolio
30.0% of your $600k
Subsidy Status
At $21k/year income, you likely qualify for ACA subsidies, potentially reducing costs significantly.
Consider Barista FIRE
Part-time work with benefits can solve the healthcare gap while supplementing your portfolio.
Barista FIRE CalculatorHow Different Scenarios Affect This Amount
Single person, low-cost area
Challenging$600k at 3.5% = $21k/year. Works if annual expenses under $18k (leaving room for healthcare).
Couple, moderate-cost area
Difficult$600k stretched between two people means $11k/person/year. May need supplement.
With pension income
EasierEven a modest $20k/year pension reduces your needed withdrawal from $600k significantly, making this amount much more comfortable.
High-cost city (NYC, SF)
Difficult$600k is challenging in high-cost areas. Consider relocating or geographic arbitrage.
Risk Factors to Consider
Limited margin for error: $600k requires everything to go right - no major market downturns, no unexpected expenses, no healthcare surprises.
Healthcare vulnerability: The $150-200k healthcare gap represents 30.0% of your entire $600k - a major risk factor.
Sequence of returns risk: Even a moderate market downturn early could derail retirement with only $600k.
Lifestyle constraints: $600k at safe withdrawal rates means $21k/year - any unexpected expense is a major percentage of annual income.
Your Next Steps
Consider whether $600k is your final number or if you can save more before retiring.
Explore Barista FIRE: $600k + $15-20k/year part-time income dramatically changes the math.
Research low-cost areas where $21k/year goes further.
Calculate if you have other income sources (pension, rental, Social Security spouse benefits).
Use our calculator to model different retirement ages - waiting 2-3 years could help.
Frequently Asked Questions
Is $600k enough to retire at 55?
$600k makes retiring at 55 difficult on its own. At 3.5% withdrawal, you'd have only $21k/year. However, $600k can work as part of a strategy: combined with part-time income (Barista FIRE), a pension, rental income, or very low expenses. Many people retire at 55 with less by being creative.
How long will $600k last if I retire at 55?
Using historical market data and the Trinity Study methodology: At 3% withdrawal rate ($18k/year), $600k has a 98%+ success rate for 40+ years. At 3.5% ($21k/year), success rate is around 95%. At 4% ($24k/year), success rate drops to around 85-90% for 40-year periods. For retiring at 55, we recommend the 3.5% rate as a balance of sustainability and livability.
What's a safe withdrawal rate for $600k at age 55?
For a 40-year retirement starting at 55, we recommend 3.5% withdrawal rate: $21k/year from $600k. This is more conservative than the traditional 4% rule (designed for 30-year retirements) and provides better protection against sequence of returns risk and longevity risk. If you have flexibility to reduce spending in down markets, you might consider 3.75%.
Can I retire at 55 with $600k and Social Security?
$600k plus future Social Security significantly improves your retirement security. However, you can't claim Social Security until 62 at earliest, and claiming at 67-70 maximizes benefits. Strategy: Use your $600k to bridge ages 55-67, then add Social Security. If Social Security provides $30k/year at 67, you'd only need $600k to cover the gap years and supplement afterward.
Should I wait to save more than $600k?
It depends on your timeline and current savings rate. Each additional year of work at a high savings rate significantly improves your position. However, health, job security, and life circumstances matter too. Consider: Can you continue saving at your current rate? Is your job sustainable? Would part-time work (Barista FIRE) be a good bridge? $600k may be enough if you're flexible.