Can I Retire at 66 With $900K in a Roth IRA and $2,200 Monthly Social Security?

Core Insights - The article discusses retirement planning, focusing on the financial aspects of retiring at age 66 with a Roth IRA and Social Security benefits [1][4]. Income and Expense Planning - A median household income of $75,000 suggests that retirees will need about 80% of their pre-retirement income, equating to approximately $60,000 before taxes or $54,600 after taxes [3]. - Social Security benefits at age 66 would provide $26,400 annually, with a potential increase to $28,295 if retirement is delayed until age 67 [4]. Roth IRA Considerations - Roth IRA withdrawals are tax-free, which means Social Security benefits would not incur federal income taxes, providing more flexibility compared to pre-tax accounts [4]. - Roth accounts are not subject to required minimum distributions (RMDs) at age 73, allowing for greater control over withdrawals [4]. Withdrawal Strategy - The classic 4% rule suggests withdrawing 4% from a balanced portfolio in the first year of retirement, which would yield $36,000 from a $900,000 Roth IRA [6][7]. - Combined with Social Security, the total retirement income would be approximately $62,400, which may not sufficiently cover spending needs, especially in higher-cost living areas [7].