Retiring at 50 with $300,000 depends on several factors, including lifestyle choices, income sources and long-term financial planning. Unlike traditional retirees who stop working at 65 and have access to Social Security and Medicare, early retirees must rely on personal savings, investment portfolios and possibly even part-time work to sustain their lifestyle.
A financial advisor can offer you expert advice to manage assets, optimize withdrawals and develop a sustainable retirement plan.
Retiring at 50 With $300,000
Retiring at age 50 means that your savings must be stretched to last longer than a traditional retirement. You’ll need to account for expenses such as housing, healthcare and daily living costs, along with the impact of inflation over time. Here are three key factors to consider if you plan to retire at 50 with $300,000.
Income Sources
Spending savings too quickly can reduce available funds earlier than planned. To help manage this, consider these five general things:
- Use multiple income sources. Supplement savings with income from investments, rental properties, part-time work, or other passive income streams. These sources can help you reduce the need to draw heavily from savings.
- Generate cash flow while preserving principal. Invest in dividend-paying stocks, bonds, or annuities to create steady income without reducing your investment balance.
- Plan withdrawals from retirement accounts carefully. Withdrawals from tax-advantaged accounts like 401(k)s or IRAs before age 59½ may trigger penalties. A Roth conversion ladder can be used to access these funds gradually and potentially avoid penalties.
- Extend savings with part-time work or small businesses. Working part-time or starting a small business in retirement can help lower the amount you need to withdraw from savings each year. This may help funds last longer.
- Factor in Social Security benefits. Even though you cannot claim benefits until at least age 62, you should include Social Security income in your long-term plan. This additional source of income will help make your retirement more sustainable. And, if you could delay claiming benefits beyond full retirement age until age 70, you could increase that benefit by 8% annually. Therefore, you may consider relying on more of your nest egg earlier on until Social Security kicks in.
Healthcare Coverage and Costs
One major cost of early retirement is healthcare, as Medicare eligibility begins at 65. Without employer-sponsored coverage, options can include private insurance, ACA marketplace plans, health-sharing programs, or COBRA. Each has different costs and coverage terms. COBRA, for example, can extend an employer plan for a limited time but often comes with high premiums.
A health savings account (HSA) can also be used to pay for qualified medical expenses with tax advantages. For 2025, HSAs contributions are limited to $4,300 for individuals and $8,550 for families. This money will grow tax-free, and withdrawals for eligible healthcare costs are also tax-free. And after turning 65, you can use HSA funds for any purpose, though non-medical withdrawals are taxable.
You should note that healthcare costs generally go up with age. So you should account for premium increases for private insurance before retiring and umbrella insurance after retiring, as well as out-of-pocket expenses and inflation when projecting retirement expenses.
Unexpected medical events can also lead to unplanned costs. Therefore, creating a reserve for medical emergencies or allocating a part of your retirement assets to cover such events can help limit this type of financial disruption.
Finally, you should review insurance policies for coverage limitations and exclusions that may also reduce future out-of-pocket exposure.
Residence and Cost of Living
Reducing housing and living expenses can make early retirement more sustainable on limited savings. One approach is relocating to an area with a lower cost of living. Some U.S. states offer financial advantages such as no state income tax, low property taxes and more affordable housing, which can reduce monthly spending and preserve retirement funds.
Another option is moving abroad. Some retirees choose countries where the overall cost of living is lower but basic needs and services remain accessible. Places like Mexico, Portugal, Thailand and Belize are common choices due to lower costs for housing, food, and healthcare compared to the U.S.
When considering relocation—domestic or international—evaluate access to healthcare, residency requirements, and currency exchange risk. Also consider travel costs, legal considerations, and proximity to family or support networks. Renting before buying can provide flexibility and help assess whether a new location fits long-term needs.
How Long $300,000 Will Last in Retirement
How long a $300,000 retirement fund can last will depend on how much is spent each year, how the money is invested and which strategy is used to make withdrawals.
One common rule for retirement withdrawals is the 4% rule, which means withdrawing 4% from the starting balance each year. Using this strategy, $300,000 could provide about $12,000 per year, which you could reasonably expect to last for 30 years under normal market conditions.
Some retirees choose a lower withdrawal rate to make the money last longer. Using a 3% withdrawal on $300,000, your annual income would drop to $9,000 but could provide more long-term stability, especially during periods of low investment returns or high inflation.
Bottom Line
Retiring at 50 with $300,000 is possible with careful planning. This includes strict budgeting, finding extra income, and making smart investment choices. Reducing expenses, moving to a lower-cost area, and avoiding large early withdrawals can help savings last longer. Working with a retirement planner may also help create a plan that fits your goals and reduces financial risks.
Tips for Retirement Planning
- A financial advisor can help you mitigate risk for your portfolio. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted 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.
- Mandatory distributions from a tax-deferred retirement account can complicate your post-retirement tax planning. Use SmartAsset’s RMD Calculator to see how much your required minimum distributions will be.
Photo credit: ©iStock.com/Szepy, ©iStock.com/Igor Suka, ©iStock.com/Andrii Zastrozhnov