Can I Retire at 55 with $750k?
Challenging
Challenging but possible with constraints. $750k at 3.5% provides only $26k/year. You'll likely need part-time income, a very lean lifestyle, or a combination of strategies.
Retiring at 55 with $750k is possible, but it requires significant trade-offs. This amount works best for those with low expenses, willingness to do part-time work (Barista FIRE), or those who have additional income sources like a pension or rental income. Here's a realistic assessment of what $750k can and can't support.
Withdrawal Rate Analysis
How much annual income does this savings level provide at different withdrawal rates?
| Rate | Annual Income | Monthly |
|---|---|---|
| 3% | $22,500 | $1,875 |
| 3.5%Recommended | $26,250 | $2,188 |
| 4% | $30,000 | $2,500 |
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
24.0% of your $750k
Subsidy Status
At $26k/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
Tight but possible$750k at 3.5% = $26k/year. Works if annual expenses under $22k (leaving room for healthcare).
Couple, moderate-cost area
Difficult$750k stretched between two people means $13k/person/year. May need supplement.
With pension income
EasierEven a modest $20k/year pension reduces your needed withdrawal from $750k significantly, making this amount much more comfortable.
High-cost city (NYC, SF)
Difficult$750k is challenging in high-cost areas. Consider relocating or geographic arbitrage.
Risk Factors to Consider
Limited margin for error: $750k requires everything to go right - no major market downturns, no unexpected expenses, no healthcare surprises.
Healthcare vulnerability: The $150-200k healthcare gap represents 24.0% of your entire $750k - a major risk factor.
Sequence of returns risk: Even a moderate market downturn early could derail retirement with only $750k.
Lifestyle constraints: $750k at safe withdrawal rates means $26k/year - any unexpected expense is a major percentage of annual income.
Your Next Steps
Consider whether $750k is your final number or if you can save more before retiring.
Explore Barista FIRE: $750k + $15-20k/year part-time income dramatically changes the math.
Research low-cost areas where $26k/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 $750k enough to retire at 55?
$750k makes retiring at 55 challenging but possible on its own. At 3.5% withdrawal, you'd have only $26k/year. However, $750k 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 $750k last if I retire at 55?
Using historical market data and the Trinity Study methodology: At 3% withdrawal rate ($23k/year), $750k has a 98%+ success rate for 40+ years. At 3.5% ($26k/year), success rate is around 95%. At 4% ($30k/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 $750k at age 55?
For a 40-year retirement starting at 55, we recommend 3.5% withdrawal rate: $26k/year from $750k. 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 $750k and Social Security?
$750k 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 $750k to bridge ages 55-67, then add Social Security. If Social Security provides $30k/year at 67, you'd only need $750k to cover the gap years and supplement afterward.
Should I wait to save more than $750k?
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? $750k may be enough if you're flexible.