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Retiring comfortably requires more than $750,000, says The Motley Fool. The average monthly Social Security Income check in 2021 is $1,543 per person, so retirees will need other sources of income. One option is to use an annuity with a lifetime income rider to estimate the income that can be received off a $750,000 savings. However, it’s important to consult a financial advisor to determine the best retirement plan.
Is $750,000 Enough to Retire?
Retirement is a dream that most of us have. The idea of not having to work every day and having the freedom to do what you want is exciting. However, the question that arises is, how much money do you need to retire comfortably? Is $750,000 enough to retire?
The average monthly Social Security Income check-in 2021 is $1,543 per person. This means that if you are retiring, you will need to have other sources of income to support your lifestyle. One option is to use an annuity with a lifetime income rider coupled with SSI to estimate better the income you could receive off a $750,000 in savings.
Annuity with a Lifetime Income Rider
An annuity with a lifetime income rider is an insurance product that guarantees you a lifetime income. You pay a lump sum of money to the insurance company, and they, in turn, pay you a fixed amount of money every month for the rest of your life. The amount you receive is determined by the amount of money you put in, your age, and your life expectancy.
The lifetime income rider ensures that you will receive a fixed amount of money every month for the rest of your life, regardless of how long you live. This means that you will not have to worry about outliving your savings.
Estimating Your Income
To estimate the income you could receive off a $750,000 in savings, we need to take into account your age, your life expectancy, and the amount of money you want to receive every month. The table below shows the estimated income you could receive based on different scenarios:
| Age | Life Expectancy | Monthly Income |
|---|---|---|
| 65 | 85 | $2,300 |
| 70 | 85 | $2,800 |
| 75 | 85 | $3,400 |
As you can see, the older you are, the higher the monthly income you can receive. However, it’s important to note that the income estimates are based on current interest rates and could change in the future.
Conclusion
In conclusion, $750,000 may not be enough to retire comfortably, especially if you want to maintain your current lifestyle. However, by using an annuity with a lifetime income rider coupled with SSI, you can estimate the income you could receive and plan accordingly. It’s important to consult with a financial advisor to determine the best retirement plan for you.
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