Personal Finance

I’m 52 and have a net worth of $6.2 Million. I’m so burnt out, can I retire early?

Maurie Backman

Published: January 9, 2025 5:55 pm

Key Points from 24/7 Wall St.

• With a large net worth, early retirement becomes less of a risk.
• Before you retire early due to burnout, think about whether a less stressful job might be a better solution.
• Consult a financial advisor to help guide your decision.
• Retiring early is possible, and may be easier than you think. Click here now to see if you’re ahead, or behind. ^(Sponsor)

Most of us have had the experience of feeling mentally and physically exhausted after a rough couple of weeks on the job. But there’s a difference between that and full-fledged burnout.

In the latter scenario, those feelings can persist for months on end, impacting your quality of life and leading to actual mental health issues. So there may come a point in time when you feel you’re ready to quit the workforce due to burnout.

That’s the situation this 52-year-old Reddit user is in. They’re tired of working and are looking to retire after years of grinding away.

Now when I read about people wanting to retire in their early 50s, my first inclination is usually to get a little concerned. Stretching savings is tough enough when you retire in your early 60s. Retiring in your early 50s could mean needing your money to last for 40 years or longer.

But here’s why I’m less worried for this Reddit user — they’ve got a net worth of $6.2 million without accounting for their home. That’s pretty impressive. And it also puts them in a great position to retire at age 52. But whether that’s the right choice is still up for debate.

The numbers do work

A $6.2 million portfolio could make it more than possible to end your career completely at age 52. If you’re retiring at that age, you’ll want to withdraw from your portfolio pretty conservatively. But even at a 2% withdrawal rate, you’re looking at about $125,000 in annual income. And with the right investment mix, you can probably go higher.

You’ll need to think about the lifestyle you want, though, before making your decision. If you’ve managed to accumulate a $6.2 net worth by age 52, it means you’re probably a higher earner who’s used to a certain standard of living, and having to scale back may be difficult.

Then again, maybe your $6.2 million portfolio is a result of frugal living. So tapping your savings conservatively may not be such a big lifestyle impediment.

Look at the big picture

Retiring in your early 50s carries risk — even when you’re coming in with lots of money. Remember, at 52, you’re at least 10 years away from being able to claim Social Security. And you’re 13 years away from being able to get Medicare coverage.

With enough savings, you can make it work. But before you decide to end your career, think about the big picture.

While $6.2 million might be plenty of money for you to live on, there are other considerations. For example, do you want to leave a legacy behind to your heirs? If so, that’s a good reason to try to earn some amount of money over the next decade. If you’re able to leave most of your savings untouched for another 10 years, you could grow your wealth exponentially.

For that reason, before you retire fully due to burnout, consider a career shift instead. Maybe you could do something less stressful and more creative that allows you to earn just enough to cover your living costs.

With a $6.2 million cushion, you don’t really have to worry about saving more money. But that way, you’ll have something productive to do with your time, all the while allowing your money to grow a bit longer.

Ultimately, it’s your mental and physical health on the line, and it’s your decision. But before you make it official, I’d recommend consulting a financial advisor to see what they have to say.

An advisor can help you run the numbers and see what lifestyle you’re looking at on a $6.2 million portfolio that may need to last 40 years or longer. They can also walk you through the risks of retiring very early so you know what challenges to anticipate.