Can I retire at 62 with $400,000 in 401k?
Asked by: Sarah Nitzsche | Last update: January 1, 2026Score: 4.8/5 (42 votes)
Can I live off the interest of $400,000?
Ideally, the rate of return on your investments is enough for you to live off of, so you never need to touch your principal. With $400,000 saved and factoring in an average annual rate of return between 10–12%, you'll have between $40,000 and $48,000 to live off of each year.
How much should I have in my 401k to retire at 62?
By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.
What is a good amount of money to retire with at 62?
Someone between the ages of 51 and 55 should have 5.3 times their current salary saved for retirement. Someone between the ages of 56 and 60 should have 6.9 times their current salary saved for retirement. Someone between the ages of 61 and 64 should have 8.5 times their current salary saved for retirement.
What is a good 401k balance at age 60?
There is no one-size-fits-all rule for retirement savings, but aiming to have between 6 and 11 times your annual salary by the time you're age 60 can help you prepare. 6 Start early, take advantage of any employer matches, consider an IRA, and save automatically to stay on track. And if you're off track, stay positive.
Can I Retire At Age 62 With 400,000 In My 401K
At what age should you have $100,000 in a 401k?
Kevin O'Leary: By Age 33, You Should Have $100K in Savings — How To Get Started. If you're just starting out in your career, $100,000 might seem like a lot of money. After all, the median salary of a 20- to 24-year-old, according to Bureau of Labor Statistics data, is just $37,024.
Is $400,000 enough to retire at 62?
Can You Retire at 62 With $400,000 in a 401(k)? It's certainly possible to retire early on $400,000, but it won't be easy. If you have the option of working and saving for a few more years, it will likely give you a significantly more comfortable retirement.
What is the #1 reason to take Social Security at 62?
Those facing financial emergencies, such as a layoff or debt, may benefit from accessing Social Security early. If you retire early and need extra income, Social Security benefits can provide supplemental funds to support your new lifestyle, hobbies or retirement activities.
Does net worth include home?
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Can I retire at 62 with 300k in my 401k?
$300k is sufficient for many people to retire, in part because you can avoid some of the biggest tax hurdles that may arise for more wealthy retirees. That said, whether or not it's enough depends on your circumstances (spending levels, location, health, and more).
How long will $400,000 last in retirement?
Safe Withdrawal Rate
Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years. If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.
How much will I get a month if I retire at 62?
Retired at earliest retirement age (62): $2,710 per month. Retired at full retirement age: $3,822 per month. Retired at age 70: $4,873 per month.
What is the magic number to retire?
The magic number that most Gen Xers feel they need to retire is $1.56 million. This is much higher than the average amount they have saved — $108,600 — and higher than most Americans feel they will need. In short, Gen X retirement is in trouble.
How much does a $400,000 annuity pay per month?
How much does a $400,000 annuity pay per month? As of January 2025, with a $400,000 annuity, you'll get an immediate payment of $2,400 monthly starting at age 60, $2,643 monthly at age 65, or $2,850 per month at age 70.
How much money do I need to invest to make $3,000 a month?
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
Why smart people take Social Security at 62?
Assuming your full retirement age is 67, if you file for those retirement benefits at 62, you'll receive around 70% of your full retirement age benefit amount. If you file for disability and are awarded those benefits, the amount that you would receive would be 100% of your full retirement age benefit, even at 62.
What is the average Social Security check at age 62?
In December 2023, roughly 590,400 retired-worker beneficiaries aged 62 got an average check of $1,298.26. In comparison, around 2.11 million retired workers aged 66 received an average payout of $1,739.92.
When my husband dies, do I get his Social Security and mine?
You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement.
Can you retire on $400,000 plus Social Security?
Combined with Social Security, this would give you $31,000 per year in pre-tax income. This isn't much to live on and it would only last you about 25 years before your portfolio runs out. Starting at age 87, you will need to coast on $16,000 per year in Social Security benefits for the rest of your life.
How to retire at 62 with little money?
If you retire with no money, you'll have to consider ways to create income to pay for your living expenses. That might include applying for Social Security retirement benefits, getting a reverse mortgage if you own a home, or starting a side hustle or part-time job to generate a steady paycheck.
How much do I need in a 401k to get $2000 a month?
According to the $1,000 per month rule, retirees can receive $1,000 per month if they withdraw 5% annually for every $240,000 they have set aside. For example, if you aim to take out $2,000 per month, you'll need to set aside $480,000.
How much money does a married couple need to retire at 62?
It's recommended that most couples save at least seven to eight times their combined annual income to retire comfortably.
What is the 4 rule for retirement?
The most commonly recommended rule of thumb is the so-called 4% rule, which means you spend 4% of your portfolio every year, on an inflation-adjusted basis. So if you retire with $1 million, you take $40,000 the first year and then the next year you take out a little more based on inflation.