Can you retire at 67 with $500,000?
Yes — on these assumptions, $500,000 is enough to retire at 67. Drawing about $3,500 a month, your savings are projected to last through your whole retirement, and you'd sit at roughly 159% of the income you're targeting — a real margin rather than a knife-edge.
At the classic 4% withdrawal rate, $500,000 throws off about $1,667 a month ($20,000 in the first year), rising with inflation after that. Add an estimated $2,100 a month from Social Security and you're at roughly $3,767 a month in today's money — set against your $3,500 target.
At 67 you're at full retirement age: Social Security is at its full value and your savings only need to cover a somewhat shorter horizon. Both quietly work in your favor, which is why the verdict here is friendlier than it looks at first glance.
Planned to age 90, the money doesn't run dry in this scenario — so the bigger questions shift from "will it last?" to taxes, health-care costs, and how much you'd like to leave behind. You could reasonably spend a little more or retire a touch earlier.
Frequently asked questions
Is $500,000 enough to retire at 67?
On these assumptions, yes. $500,000 at 67 funds about 159% of a $3,500-a-month lifestyle once Social Security is included, and the money is projected to last through age 90. Adjust the spending and assumptions above to match your own plan.
Can you live off the interest of $500,000?
At a safe 4% withdrawal rate, $500,000 provides about $20,000 a year ($1,667 a month) without depleting it in real terms. That's below your $42,000-a-year target, so you'd top it up with Social Security or draw down some principal over time.
How long will $500,000 last in retirement?
In this scenario — spending about $3,500 a month from age 67, with Social Security helping — $500,000 is projected to last through age 90 and beyond. Spend more or retire earlier and that horizon shortens; the chart above shows the trajectory.
How much does Social Security change the answer?
A lot. An estimated $2,100 a month from Social Security covers part of your spending directly, so your savings only have to fund the rest. That's why the nest egg you "need" is far smaller than $3,500 a month × the length of your retirement — guaranteed income does real work.
What is the 4% rule?
The 4% rule is a planning guideline: withdraw about 4% of your starting balance in year one — $20,000 on $500,000 — then adjust that amount for inflation each year. It's a starting point, not a guarantee; you can set a more cautious or more aggressive withdrawal rate in the assumptions above.