Smart US retirees know exactly when their 401(k) is big enough to retire early. Are you already there?

Core Insights - Traditional retirement planning often relies on general assumptions, such as retiring at age 62 and withdrawing 4% annually from savings, which may not apply to those wishing to retire earlier [1][2] Group 1: Retirement Planning Assumptions - The average retirement age in the U.S. is 62, leading to a typical retirement length of 16.4 years based on life expectancy of 78.4 years [3] - Conventional financial plans assume reliance on Social Security benefits, which are available starting at age 62, and are based on a 30-year retirement duration [3] Group 2: Early Retirement Considerations - For individuals retiring early, such as at age 45, the retirement duration could extend to 33 years or even 40 years, necessitating a larger nest egg and a more conservative withdrawal strategy [4] - Early retirees must also account for the gap between their retirement age and eligibility for Social Security and Medicare [4] Group 3: Financial Strategy for Early Retirement - Investors planning for early retirement should ensure their 401(k) is substantial enough to endure 40 years of inflation and market fluctuations while meeting financial needs until government programs are accessible [5] - A disciplined and conservative financial approach is essential for early retirees, requiring a larger nest egg and a lower withdrawal rate [5]