Personal Finance

I'm 52 with a $3.5 million net worth - should I retire early since my home is paid off now?

Kristin Hitchcock

Published: November 24, 2024 1:28 pm

Last Updated: January 24, 2025 11:49 pm

24/7 Wall St. Key Takeaways:

• Retiring early is just as much about your mental readiness as it is about financial readiness. Many people end up with enough to retire and then never take the leap.
• Reflect on the wisdom shared by others: Don’t wait too long, trust your plan, and focus on what matters most.
• Also: Take this quiz to see if you’re on track to retire (Sponsored)

People spend years saving up for retirement. However, a common dilemma I’ve come across is that very few people feel ready to retire when it’s time to take the leap! 

The question of “when” will always loom large, especially when you’re aiming to retire early. In a recent Reddit post in the ChubbyFIRE community, the user had this exact problem. At 52, with a $3.5M net worth (including a paid-off home worth $1.5M), the decision feels monumental. Is it enough to leave the workforce, or is there still unfinished work ahead?

Here’s my recommendation for any of those who are waiting to take the leap. While this is my opinion, working with a financial planner can give you some personalized financial advice, which this article is not. 

Lessons from ChubbyFIRE Alums

Here’s some advice from those who have been there before:

• Many retirees wish they’d retired sooner. A top-voted comment put it plainly: “At 52, with $5M, you’re wasting the best years of your life working at a J.O.B.” Early retirees often regret not retiring even early. It’s common to hold onto your job longer than you need to!
• Retirees frequently mention being overly conservative. One user shared how they overshot their goal, amassing $13M from an initial target of $5–7M, but lamented not trusting the market sooner.
• It’s so important to recognize what “enough” is. Enough is a powerful concept. It’s not just about hitting a financial target but embracing contentment with what you have. It’s so important to combat the fear of running out of money or feeling the need to keep working.
• Post-retirement life isn’t just about finances—it’s about living meaningfully. Some retirees struggle to spend their money or find fulfilling ways to occupy their time. Many people get meaning from retirement. After your retirement, you’ll need to get that meaning from elsewhere. 

Should You Retire?

So, should our Redditor retire? With 3.5M in net worth, there are several questions the Redditor (and anyone in a similar position) should ask themselves:

• Do you have enough to cover spending needs? In a high-cost-of-living (HCOL) area, consider how much you’ll spend annually and how inflation might impact that. A $2M liquid net worth could support $80–100K per year at a 4% withdrawal rate.
• How will you handle healthcare costs? Private insurance is expensive, and you’ll need to consider how this will get paid for before Medicare eligibility kicks in.
• Are you willing to adjust your spending if the market dips? Making retirement work is a lot about flexibility. 
• What are your goals? If your current job is fulfilling, you may not want to retire early. However, retiring early may be the thing you need to reach your personal goals. It all depends on what you want to do with your life!