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How much do you need to retire at 60 on $80,000 a year?

About $2,830,000 for $80,000 a year, raised with inflation, to last the 35 years from 60 to 95 in 9 of 10 simulated markets. Below: the odds for other nest eggs, how much Social Security takes off, and the same spending at other ages.

Short answer: About $2.83 million for $80,000 a year, raised with inflation, from 60 to 95 in 9 of 10 of 1,000 simulated markets on Trinity-style returns; $4.22 million on cautious ones. With $2,000 a month of Social Security from 67 it is about $2.15 million, including $168,000 to bridge to 67.

Updated · By Berkay Kolay

Nest egg for $80,000 a year from 60, and the odds it lasts

Each row is a multiple of the yearly spending. The odds are the share of 1,000 simulated markets in which $80,000 a year, raised with inflation, lasts the full 35 years.

Chance $80,000 a year from 60 lasts to 95, by nest egg
Nest eggMultipleTrinity-style oddsCautious odds
$1,600,00020×39%24%
$2,000,00025×66%42%
$2,400,00030×82%60%
$2,800,00035×90%72%
$3,200,00040×95%81%
$4,000,00050×99%88%

The 9-in-10 figure is $2,830,000 on Trinity-style returns and $4,220,000 on cautious ones.

With Social Security from 67

Nest egg for $80,000 a year from 60, Social Security from 67
Benefit a monthInvestedBridge to 67Total
None$2,830,000$0$2,830,000
$1,500$2,200,000$126,000$2,326,000
$2,000$1,980,000$168,000$2,148,000
$2,500$1,770,000$210,000$1,980,000

$80,000 a year at other retirement ages

Nest egg for $80,000 a year to 95, 9 in 10 markets
Retire atTrinity-styleCautious
40$3,810,000$6,620,000
45$3,610,000$6,070,000
At 50$3,370,000$5,480,000
At 55$3,130,000$4,820,000
58$2,950,000$4,450,000
60$2,830,000$4,220,000
At 62$2,690,000$3,970,000
At 65$2,470,000$3,500,000
At 67$2,340,000$3,230,000
70$2,120,000$2,850,000

All ages and Social Security on one page: retiring on $80,000 a year. The other way round: can I retire at 60 with $3 million?

Retiring at 60, before Medicare

Health insurance until 65 is extra: COBRA for up to 18 months, then usually a marketplace plan whose premium tax credit depends on the income you report; see health insurance before Medicare. From 59½, 401(k) and IRA withdrawals carry no 10% additional tax. See the Rule of 55 and 72(t) calculators.

How it is worked out

The nest egg is the smallest balance, to the next $10,000, whose first-year withdrawal of the spending, raised with inflation every year, still leaves money at 95 in 9 of 10 of 1,000 simulated sequences of yearly returns. Trinity-style returns average 7% with 12% volatility and 3% inflation; cautious ones 5%, 15% and 2%. It is the same table the can I retire pages use, read the other way. With Social Security, the portfolio is sized for the spending the benefit does not cover, and the benefits it replaces before 67 are added as cash with no growth. Taxes come out of the spending. More on the methodology page.

Frequently asked questions

How much do I need to retire at 60 on $80,000 a year?
About $2.83 million: enough for $80,000 a year, raised with inflation, to last the 35 years to 95 in 9 of 10 simulated markets on Trinity-style returns. On cautious returns (5% average, 15% volatility) it is $4.22 million. The 4% rule would say $2.00 million.
How much less do I need with Social Security?
With $1,500 a month from 67, about $2.33 million; with $2,500, about $1.98 million. Each includes the benefits the portfolio has to replace before 67.
What changes if I retire at 60 instead of 65?
The money has to last 5 more years, so the same $80,000 a year needs about $360,000 more than retiring at 65 ($2.47 million). Health insurance before Medicare is extra, and money in a 401(k) or IRA before 59½ needs the Rule of 55, a 72(t) series or a Roth ladder.
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