Is 1.5 million enough to retire at 55?

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By Nick

Quick Peek:

Got $1.5 million saved up and planning to retire at 55? Well, it all depends on your withdrawal rate and how long you live. A 4% withdrawal rate is reasonable, which means you can withdraw $60,000 per year from your savings. Don’t forget to consider other factors such as life expectancy and other sources of income like pensions or social security benefits. Careful planning and budgeting are essential for a comfortable retirement.

Is 1.5 Million Enough to Retire at 55?

Retirement is a significant milestone in life, and it requires careful planning to ensure a comfortable future. One of the most critical factors to consider is the amount of money needed to sustain oneself during the golden years. While there is no one-size-fits-all answer to this question, having $1.5 million saved up may be enough to retire at 55, depending on several factors.

Withdrawal Rate

The amount of money you consistently take out of your accounts to support yourself is known as the withdrawal rate. It is a crucial factor to consider when determining if $1.5 million is enough to retire at 55. A reasonable withdrawal rate is around 4%, which means you would withdraw $60,000 per year from your savings. This amount should be enough to cover your living expenses without depleting your savings too quickly.

Life Expectancy

Another critical factor to consider is how long you will live. If you retire at 55 and live until your mid-80s, your savings will need to last for at least 30 years. This is where careful planning and budgeting come into play. It is essential to consider factors such as inflation, unexpected expenses, and healthcare costs when determining your retirement budget.

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Other Sources of Income

It is also crucial to consider other sources of income you may have during retirement. For example, if you have a pension or social security benefits, this can supplement your savings and reduce the amount you need to withdraw from your accounts each year. Additionally, if you plan to work part-time during retirement, this can also provide additional income to support your lifestyle.


In conclusion, having $1.5 million saved up may be enough to retire at 55, but it all depends on your withdrawal rate, life expectancy, and other sources of income. It is essential to carefully plan and budget for retirement to ensure a comfortable future. Consulting with a financial advisor can help you determine the best course of action for your specific situation.

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