A 2024 Northwestern Mutual survey found that Americans think it’ll take $1.46 million, on average, to enjoy a comfortable retirement. So if you’re sitting on $5 million, you may be eager to take the plunge — even if you’re a bit young to be bringing your career to a close.

Key Points from 24/7 Wall St.

• It’s possible to stretch $5 million an extra decade, but you need to be cautious.
• Consider the added costs of retiring early, like health insurance.
• Consult an advisor to make sure you can stretch your savings as long as needed.

Such is the situation a 52-year-old outlined on Reddit. In a recent post, they explained that they just hit $5 million and want to know how to generate income and live off of that sum.

The reality is that it’s more than possible to retire at 52 on $5 million. But it’s crucial to manage that money wisely.

Make sure you’ve accounted for everything

Retiring early becomes much easier when you have a lot of money to work with. But whether you’re retiring at 52 with $5 million or $500,000, it’s important to manage that money strategically, all the while accounting for the different costs that are apt to come up.

One thing worth noting about the post above is that the Redditor’s $5 million includes a paid-off $1.4 million home. But a home worth a lot of money isn’t the same thing as an investment portfolio — unless, of course, a portion of it is being rented out so it generates cash. So for all intends and purposes, the poster would be best served assuming they have $3.6 to work with.

That’s not a small sum to retire on at 52. But at that age, government benefits like Medicare and Social Security are still pretty far off.

Medicare eligibility doesn’t start until 65, and the earliest age to claim Social Security is 62. Filing then, though, results in a permanently reduced benefit. And while you could argue that that’s not a big deal for someone with a few million dollars, it’s a consideration nonetheless.

Now in the context of early retirement, it’s often a good idea to toss out the 4% rule and manage your savings more conservatively. If you have $3.6 million (because remember, we’re excluding the $1.4 million home), a 3% withdrawal rate gives you $108,000 per year, not accounting for inflation.

That’s not a ton of money when you’re on the hook for health insurance premiums. And also, if you’ve managed to accumulate $5 million in assets by age 52, then chances are, you’re used to a pretty generous income. You may have to make some adjustments if you decide to retire and stretch your savings from this point onward.

Don’t be afraid to get help

If you’re 52 years old with $5 million in assets, you’ve clearly done well for yourself. But that doesn’t mean you can’t benefit from professional financial advice.

Sit down with a planner or advisor and figure out what your life might look like if you were to retire immediately. And have them suggest a mix of assets that allows you to continue generating growth in your portfolio without taking on undue risk.

In the end, you’re in a good place no matter what. But after running the numbers, you may conclude that while you could retire at 52, it’s perhaps not the best idea. Working a few more years in some capacity could be a choice that works better for your peace of mind, especially if you’re able to continue receiving health coverage through an employer so you don’t have to bear that huge expense on your own.

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