Can I Retire at 62 With $1M in a Roth IRA and $2,250 From Social Security?

Core Insights - The article discusses the financial feasibility of retiring at age 62 with a $1 million Roth IRA and $2,250 monthly Social Security benefits, suggesting that while it is possible, it may require a tighter budget in retirement [1][3][6] Income Analysis - The expected annual income in this scenario is approximately $67,000, which breaks down to about $5,583 per month, combining Social Security and Roth IRA withdrawals based on the 4% rule [3][5] - The Roth IRA significantly reduces tax implications, allowing for a more straightforward calculation of effective income, as there are minimal taxes on withdrawals [5][6] Financial Considerations - Important factors influencing retirement income include marital status, location, taxes, living costs, and life expectancy, which can greatly affect financial planning [4][6] - Retiring at 62 with the given financial setup may lead to a substantial decrease in lifestyle, especially for individuals who previously earned a six-figure income [6][8] Budgeting Risks - The primary risk associated with this retirement plan is the need for strict budgeting, particularly when considering healthcare, insurance, housing, and inflation [7][8]