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$500,000 IRA and $2,000 Social Security could fund retirement at 67
A SmartAsset analysis cited by Yahoo Finance models scenarios ranging from withdrawing about $4,000 per month for 20 years to using bond returns near 4.0% to extend income.
A retirement planning scenario reviewed by Yahoo Finance suggests that someone with a $500,000 pre tax IRA and about $2,000 per month from Social Security may have enough resources to retire at age 67, depending on their spending and how long they need the money to last.
The analysis emphasizes the need to weigh health and longevity, noting that work capacity and day to day tolerance may change as people move into their late 60s and 70s.
In a baseline example, the article frames the plan as roughly $4,000 per month in total withdrawals and Social Security income over a 20 year hypothetical period. It also highlights how investment and withdrawal structure can shift outcomes, including a case where keeping the portfolio entirely in cash supports about $2,000 per month from cash withdrawals plus Social Security.
The piece further lays out alternative approaches, including investing the portfolio in corporate bonds with average returns cited at about 4.0% per year, which it says could reduce withdrawals and provide income at an amount that could last longer, and a drawdown scenario that targets about $4,800 per month over 20 years. It also notes that a lifetime annuity is another option, projecting combined income of roughly $5,300 per month.