How Long Will $300,000 Last In Retirement?
The4% ruleis a guideline often used by financial advisors to help clients plan for retirement. The 4% rule suggests that retirees can safely withdraw the amount equal to 4 percent of their savings during their retirement year and then adjust for inflation each subsequent year for 30 years.
However, this rule has been debunked recently, and the appropriate withdrawal rate is now roughly 2.8%.
How To Retire On $300K.
The average monthly Social Security Income check for 2021 is $1,543 per person. In the tables below, we’ll use an annuity with a lifetime income rider coupled with SSI to better understand the income you could receive from $300,000 in savings. The data will be based on the following:
- Social Security Benefits will be based on couples at $3,086 total.
- $300,000 annuity with an income rider providing a monthly income for life.
- The starting point will be age 62 since this is the earliest age to collect SSI.
The table below illustrates how much monthly income can be generated immediately with annuity payments and Social Security Income (SSI).
ADDITIONAL READING: How Much Does a $300,000 Annuity Pay?
Age | SSI | Annuity | Total |
---|---|---|---|
62 | $3,086 | $1,888 | $4,974 |
65 | $3,086 | $1,983 | $5,069 |
70 | $3,086 | $2,138 | $5,244 |
How to Retire on $300,000 in 5 Years
The table below illustrates how much monthly income can be generated in 5 years with a combination of annuity payments and Social Security Income (SSI).
Age | SSI | Annuity | Total |
---|---|---|---|
62 | $3,086 | $2,870 | $5,956 |
65 | $3,086 | $2,973 | $6,059 |
70 | $3,086 | $3,183 | $6,269 |
Living Off The Interest On $300,000
Some retirees like to withdraw interest from a fixed-interest savings account like a fixed annuity or CD. For example, the interest on three hundred thousand dollars is $10,753.86 annually with a fixed annuity,guaranteeing 3.25% annually.
Find all the current fixed annuity rates here.
Can I Retire At 55 With $300K?
You can retire at 55 with $300,000, earning $16,440 annually for the rest of your life. Starting at age 62, you can start your Social Security Benefits. Is $300k enough to retire at 55? That depends on your lifestyle. You can retire if $1,370 monthly is enough to pay the bills. If you need more income, the answer is no. You can not retire on $300,000 at age 55. You should wait.
Why Buy An Annuity?
Annuities are the only retirement plan in the United States that provides a guaranteed income for a lifetime, even if the plan runs out of money. The annuity is a money management tool in retirement, taking all the guesswork in budgeting yourday-to-day expenses. By utilizing this financial plan, a retiree will never have toworry about running out of money.
Annuity Basics
Understanding Lifetime Income Riders
Things To Consider When Retiring
- Inflation is rising whether you like it or not. Plan accordinglyor decrease your lifestyle.
- Per the U.S. Department of Health and Human Services, you have a 70% chance of entering a Nursing Home, Assisted Living Facility, or Home Health Care. Buylong-term care insurancenow.
- There is a 100% chance you will die, so buyaffordable life insurance or, at the minimum,burial insurancefor funeral expenses.
Next Steps
If you have $300,000 saved for retirement, annuities are the best way to guarantee that you will have a steady income for life. Request a quote today to see how much money you can receive monthly from an annuity. With annuities, you can rest assured knowing that your retirement savings will last as long as you do.
Find Out How Much Retirement Income $300,000 Can Generate
Retirement Income Guides
- Is 5 Million Enough To Retire at 60?
- Can You Retire on 2 Million Dollars?
- Can I Retire at 60 with $1.5 Million?
- How to Retire with 1 Million Dollars.
- Can I Retire With $800k?
- How To Retire at 60 with $500K.
- How to Retire with $200K.
- How to retire with 300k annually
- How Much Should a 40-Year-Old Have In Retirement?
- Estimate Savings With Our Simple 40k Calculator
- Know Exactly What Your Retirement Savings Can Offer With Our Simple Retirement Calculator.
- How Do You Buy An Annuity?
Related Guides
- How Much Money Do You Need To Retire With $30,000 a Year In Income?
- Do I Need a Financial Advisor in Retirement?
- Can You Retire at 65 with $1 Million in 401k and Social Security Benefits?
- How To Retire on 3 Million Dollars
- How to Guarantee a 7% Safe Withdrawal Rate in Retirement
- Is $2 Million in a 401K Enough to Retire?
- Annuities vs. Living Off Interest
- Can I Retire At 62 With $1 Million In My 401K?
- Annuity vs. 457 Withdrawal: Advantages and Disadvantages