Can I Retire at 55 with $800k?
Challenging
Challenging but possible with constraints. $800k at 3.5% provides only $28k/year. You'll likely need part-time income, a very lean lifestyle, or a combination of strategies.
Retiring at 55 with $800k 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 $800k 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% | $24,000 | $2,000 |
| 3.5%Recommended | $28,000 | $2,333 |
| 4% | $32,000 | $2,667 |
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
22.5% of your $800k
Subsidy Status
At $28k/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$800k at 3.5% = $28k/year. Works if annual expenses under $24k (leaving room for healthcare).
Couple, moderate-cost area
Difficult$800k stretched between two people means $14k/person/year. May need supplement.
With pension income
EasierEven a modest $20k/year pension reduces your needed withdrawal from $800k significantly, making this amount much more comfortable.
High-cost city (NYC, SF)
Difficult$800k is challenging in high-cost areas. Consider relocating or geographic arbitrage.
Risk Factors to Consider
Limited margin for error: $800k requires everything to go right - no major market downturns, no unexpected expenses, no healthcare surprises.
Healthcare vulnerability: The $150-200k healthcare gap represents 22.5% of your entire $800k - a major risk factor.
Sequence of returns risk: Even a moderate market downturn early could derail retirement with only $800k.
Lifestyle constraints: $800k at safe withdrawal rates means $28k/year - any unexpected expense is a major percentage of annual income.
Your Next Steps
Consider whether $800k is your final number or if you can save more before retiring.
Explore Barista FIRE: $800k + $15-20k/year part-time income dramatically changes the math.
Research low-cost areas where $28k/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 $800k enough to retire at 55?
$800k makes retiring at 55 challenging but possible on its own. At 3.5% withdrawal, you'd have only $28k/year. However, $800k 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 $800k last if I retire at 55?
Using historical market data and the Trinity Study methodology: At 3% withdrawal rate ($24k/year), $800k has a 98%+ success rate for 40+ years. At 3.5% ($28k/year), success rate is around 95%. At 4% ($32k/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 $800k at age 55?
For a 40-year retirement starting at 55, we recommend 3.5% withdrawal rate: $28k/year from $800k. 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 $800k and Social Security?
$800k 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 $800k to bridge ages 55-67, then add Social Security. If Social Security provides $30k/year at 67, you'd only need $800k to cover the gap years and supplement afterward.
Should I wait to save more than $800k?
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? $800k may be enough if you're flexible.