How Long Will $600,000 Last in Retirement?

One of the biggest worries associated with retirement planning is ensuring you’ve saved enough money. Some people aim to save $1 million or more. Others target $500,000 to $600,000 instead. But just how long will $600,000 last in retirement? And is it enough? Asking those kinds of questions can help you shape your retirement savings strategy. Something else that can help you shape your retirement savings is working with a financial advisor.

Can You Retire With $600,000?

It’s possible to retire with $600,000 in savings with careful planning but you’ll need to consider how long your savings might last. Whether you can successfully retire with $600,000 can depend on a number of factors, including:

Your desired retirement age
Estimated retirement budget
Expected longevity
Total savings and income

The earlier you retire, the longer your retirement savings has to last, especially if you have a longer life expectancy. And the type of lifestyle you choose can influence how far $600,000 will go in retirement. Things like inflation and market volatility can also affect your overall retirement outcomes. Health also plays a role, as healthcare costs typically increase with age.

Can I Retire at 62 With $600,000?

Retiring at 62 may be your goal, but can you do it with $600,000 in savings? If you plan to downsize your home, live a minimalist lifestyle and supplement your retirement savings with a pension plan, annuity or Social Security benefits then the answer may be yes.

Retiring at 62 with $600,000 may not be realistic if you plan to spend more than you did pre-retirement or lack other income sources. While Social Security benefits can provide income, taking those benefits at 62 will reduce the amount you receive. You’ll need to wait until full retirement age, typically 66 or 67, to get your full benefit amount. And you can increase your benefits if you’re able to delay claiming until age 70.

It’s also important to consider overall health and how that can impact your retirement plans. If you manage to stay healthy and never need long-term care then $600,000 could be enough to sustain you in retirement. On the other hand, if you need long-term care in a nursing facility that could take a large bite out of your savings.

Medicare doesn’t cover extended nursing home care. Medicaid can but you may need to spend down the majority of your assets first to qualify. Setting up a Medicaid asset protection trust may help you qualify without spending down all your assets.

How Long Will $600,000 Last in Retirement?

Your withdrawal rate largely determines how long $600,000 will last. A common rule of thumb for retirement savings withdrawals is the 4% rule. This rule suggests withdrawing 4% of your retirement savings per year to live on. Hypothetically, a retiree who expects to spend 30 years in retirement should be able to safely withdraw 4% of their savings annually without running out of money.

Here’s how the numbers look in practice. Assume you retire at 62 with $600,000 and follow a 4% withdrawal rule, taking $24,000 in the first year and adjusting withdrawals for inflation of 2.9% annually. If the portfolio earns a 5% annual return, the projections show the savings lasting for roughly 30 years, covering expenses through age 92, with a remaining balance of a little over $100,000. This scenario reflects relatively steady returns and limited disruption early in retirement.

If you adjust the assumptions to reflect a more typical retiree allocation, the picture changes. Using a 60/40 stock-bond mix and the same 4% inflation-adjusted withdrawal rate, the portfolio can still span a 30-year retirement, but the ending balance is lower and the outcome is more sensitive to market declines, particularly in the first decade. The reduced equity exposure dampens growth potential, which narrows the buffer available later in retirement even as it moderates volatility.

Now, assume that inflation increases to 4%. In that scenario, you’d run out of money by age 90. Rising prices can shrink your purchasing power over time, so it’s worth considering. This is where it becomes helpful to consider other sources of income for retirement, such as Social Security benefits or a pension if you have one.

Again, you can begin collecting Social Security as early as age 62 but you’ll get a lower amount than you would if you waited until full retirement age. But if you’re retiring with $600,000 in savings, taking benefits earlier could make sense if you’re worried about running out of money based on your anticipated life expectancy. A Social Security calculator can help estimate your future benefits.

How to Retire With $600,000

If you’re interested in retiring with $600,000 in savings, planning early is important. You’ll need to consider your retirement age, expected lifestyle and overall savings and income outlook. That includes planning for future income needs for your spouse as well if you’re married.

Contribute to a 401(k)

The earlier you begin saving, the easier it may be to reach your $600,000 goal. So if you have a 401(k) or other work-provided retirement plan, you may want to focus on maxing that account out first. At the very least, it’s important to save enough to qualify for the full employer match if there is one. If you don’t have a 401(k), you can still save in an individual retirement account.

Save in an IRA

A traditional IRA can offer tax-deductible contributions, with taxes on earnings deferred until you retire. A Roth IRA offers no upfront deduction but qualified withdrawals are tax-free. A SEP or SIMPLE IRA could make sense if you’re self-employed. SEP and SIMPLE IRAs allow higher annual contributions than traditional or Roth IRAs. In terms of how withdrawals are taxed, they follow the same tax rules as traditional IRAs.

Consider an Annuity

You may also consider creating an additional stream of income for yourself with an annuity. An annuity is an insurance contract in which you pay a premium in exchange for receiving payments back later. There are different types of annuity products to choose from but they can all create guaranteed income. If you’re married, you may be able to carry those benefits over to your spouse when you pass away.

Consult a Financial Advisor

Talking to a financial advisor can help you decide if an annuity might be right for you. Your advisor can also discuss other strategies that can help you reach your goal of saving $600,000 for retirement. For example, they can offer advice on how to best allocate your assets to generate your desired returns, both before and during retirement. They can also help you choose investments for maximum tax and cost-efficiency.

Bottom Line

How long $600,000 lasts in retirement ultimately depends on spending patterns, timing of withdrawals and the flexibility built into your plan. A detailed retirement budget helps translate a portfolio balance into real-world income needs, showing how much you’ll rely on savings each year and whether that target aligns with the lifestyle you want to maintain.

That’s where personal cost choices start to matter more than abstract return assumptions.

“It’s important to think about lifestyle costs as you plan your retirement savings target. Consider whether you’re open to downsizing or moving to a cheaper state to save on housing and basic living expenses. And don’t forget about leisure costs you might face as a retiree, from country club membership fees to flights and hotels if you plan to travel,” said Tanza Loudenback, CFP®.

Tanza Loudenback, Certified Financial Planner™ (CFP®), provided the quote used in this article. Please note that Tanza is not a participant in SmartAsset AMP, is not an employee of SmartAsset and has been compensated. The opinion voiced in the quote is for general information only and are not intended to provide specific advice or recommendations.

Retirement Planning Tips

Consider talking to a financial advisor about what retiring on $600,000 might look like for you and whether that’s something that’s doable. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Use SmartAsset’s no-cost retirement calculator so get a good idea of the progress you’re making in building a retirement nest egg.
In addition to tax-advantaged accounts, such as a 401(k) or IRA, you might also consider opening a taxable brokerage account. A brokerage account can offer more flexibility in terms of the types of securities you can trade. This can help increase diversification and give you an additional source of savings. And many brokerages now offer $0 commission fee trading, which can save you money.