Can You Retire with $500,000?

$500,000 can support retirement in some cases, but it depends heavily on spending, lifestyle, and timing.

What $500,000 can realistically support

A common guideline is the 4 percent rule, which suggests withdrawing about 4 percent per year. With $500,000, that equals roughly $20,000 per year before taxes.

Is that enough to retire?

For most people, $20,000 per year is not enough to fully replace income. However, it may work if you have other income sources like Social Security, a pension, or part-time work.

When it might work

Retiring with $500,000 is more realistic if you: live in a lower cost area, reduce expenses significantly, or retire later when Social Security benefits are available.

Big risks to consider

The biggest risks include inflation, healthcare costs, and market downturns early in retirement. With a smaller portfolio, there is less margin for error.

How to make $500,000 last longer

You can stretch your savings by lowering withdrawals, delaying retirement, or continuing some form of income. Using a flexible withdrawal strategy can also help reduce risk.

Use the calculators

Use the tools on this site to test different withdrawal rates, timeframes, and growth assumptions. Small changes can make a big difference in how long your money lasts.