How Much Do I Need To Retire At 55. As discussed in our previous article that answers the general question of how much do I need in my pension pots to retire we established that a pension pot of around 500000 will provide an income of around 20000 each year which many will find acceptable and others may find this is not enough. Required Income Current Dollars.
The amount of money you should have in your pension pot to retire at 55 will depend on your personal circumstances. According to the UKs Centre for Research in Social Policy the minimum recommended income in retirement is 9609 a year so if you retire at 55 youll need at least 105699 to last until your state pension kicks in at 66. Retiring at 55 can leave you 30-plus years without a paycheck.
Asking yourself How much do I need to retire at 55 Everyones situation is different but on average youd need roughly 15M.
Sure you can pull money out of your 401k without the 10 percent penalty for early withdrawal at the age of 55. Youd need at least an estimated 650000 pension pot to retire at the age of 55 or 57. Required Income Current Dollars. An early retiree should live on their taxable accounts before withdrawing from retirement accounts.
