A Reddit user recently asked if they could move up their planned retirement date from 70 to 67. The poster is turning 60 with $800,000 saved, they owe $300,000 on their home with a mortgage at 2.5%, they are anticipating some big home repairs, and their only child recently graduated from college. They want to travel while they are still in good health, and are wondering if they can make it happen.

Ultimately, the big question they’ll need to answer to make that choice is just how much income they need their retirement accounts to produce — but, odds are, retiring on their preferred schedule could be within the cards.

Is retiring at 67 doable with $800K saved at 60?

The good news for the Reddit poster is that they are likely on track to make retirement happen at 67, depending on their spending needs.

With $800,000 already invested, even if they never put another dollar into their 401(k), they’d have a nest egg worth $1,284,625.18 at 67 assuming a 7% average annual return, which is reasonable given their age and likely risk tolerance.

If they followed updated recommendations for a safe withdrawal rate and took 3.7% out of their retirement account in year one, their nest egg would provide $47,531.13 in annual retirement income. If they retire at 67, they’d have hit their full retirement age for Social Security, so they’d also be able to claim their benefits with no penalties for filing early. The Redditor didn’t mention how much Social Security income they have, but even with an average benefit of $1,907 per month, Social Security would add on an additional $22,884 in annual income. If the poster could live comfortably on $70,415.13 plus whatever their spouse brings in, they’d be fine to retire.

Of course, the poster also said they are currently contributing 16% to their 401(k) with a 4% match for their employer, so they’d have even more money than this from savings.  Plus, since they are making six-figures, their Social Security benefit would likely be above average as benefits are based on average wages throughout your career.  Chances are good they’d have plenty of funds to have a very comfortable future.

Consider your budget and your financial needs as a retiree

When you are considering retiring, the important thing is to make sure the finances of it will work for you personally. That’s because your spending needs, projected Social Security benefit, and risk tolerance are all going to impact the amount of retirement savings you must have to feel comfortable leaving work.

One rule of thumb is that your nest egg should be 10 times your final salary in order to be able to retire comfortably. However, you can and likely should work with a financial advisor to make a personalized budget and see what your actual income needs are and what income sources you’ll have available to you. You’ll also want to be careful that you are not withdrawing too much too soon from your accounts so you don’t risk them running dry and that you understand how your age when you claim Social Security affects your benefits.

By taking these issues into consideration, you can be sure retirement isn’t something you come to regret. The Reddit poster will likely find that retiring at 67 will work out just fine, but running the numbers is the only way to be sure.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.