Can I Retire at 55? How Much Do I Need To Save To Retire at 55?

Can I Retire at 55? How Much Do I Need To Save To Retire at 55?

In this video I want to help answer the question, How much money do I need to save to retire at 55? We have looked at many can I retire at 55 scenarios, but never how much in retirement savings and retirement investments do I need to retire at 55. I also want to take into account inflation throughout retirement starting with retiring at 55 and the average social security benefit starting at 62.

Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.

Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.

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**Please make sure you talk with your CPA, Financial Advisor, Retirement Planner, or Investment Advisor Representative, before implementing any content from this channel. All videos are for informational and educational purposes only. None of the content, comments, responses, information, or any other item on this channel constitutes financial advice or recommendations. Please call Pearl Wealth Group at 813-807-5060 to go through your Retirement Income, Retirement Investments, or Retirement Plan in more detail.**

Pearl Wealth Group
Drew Blackston, CRC® & RFC®
Office: 813-807-5060

Getting you to Retirement, through Retirement, & protecting YOUR ability to stay in Retirement!

#retirementplanning #retirement #financialfreedom

[yourfinancialekg]

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[paulwoodruff]

Everyone. Drew is absolutely the real deal. We've met with several investment firms. None have come close to what Drew and team have done for our family. Reach out and just speak with Drew. You will hear for yourself what we learned and know.
Drew and team, thank you for being such a blessing to us. Please continue being a positive and trusting beacon of light. You are doing great things!

[jimrinard]

I really appreciate your channel. You have really helped me as I plan my retirement in the near future. May God bless your family as you have blessed mine with the knowledge you have given me.

[johnb]

very very good video Drew, not many folks on YT go down to this level. keep up the good work !

[swamprat]

your math is wrong. not only did you factor the total inflation for every year, you have not growth on the money you still have invested. 1600 in SS today is not 1600 SS in 7 years. also at age 55 to have 1.1mil at 62 that would be about 550k-600k. So the real number needed at age 55 would be closer to 1.1million not 1.6 million.

[robnelson]

You didn’t take into account that social security goes up every year and your investments will grow from age 55 to 62. I’m sure the present value of what you need is much lower than 1.6 million.

[grigorirasputin]

You should incorporate Brandonflation into your calculation

[rhondavigil]

Very good video. This is close to our situation currently.

[OdintheGermanShepherd]

My (very diversified) 401K has been greatly shrinking since Biden got his governmental policies up and running…3% inflation…its been WAY higher recently.

[ariefraiser]

6:06 - There's a major issue with the way you're calculating the future retirement income. You said retirement need has gone from $55, 000/year today to over $67, 000 in the future. You then subtracted $19, 000 social security income from the $67, 000 to get the future yearly amount shortfall the investment portfolio would have to cover of about $48, 000. The major issue is you didn't inflate the social security payout. Social security does increase with inflation. Assuming 2.5% average annual increases, the future value of that annual social security would be about $25500. $67, 000 - $25500 = $41, 500. This means the future portfolio needed is about $1, 037, 500.

[shawnm.]

Great video. I would love to see these numbers with taking Social Security at 70 too.

[yujie]

Thanks for the video and explanation. $1.6mm net worth for a 55 year old isn't likely for many people in this country. Can someone at age 55 retire with $500k net worth but reducing annual expense to $40k a year? In your calculation, I assume you factor in the growth of your portfolio, right? With 4% rule, someone can live on $1mm net worth with $40k annual withdrawal amount perpetually and still keep $1mm at the end of his/her life. For your calculation, how much is left at the end of that person's life?

[bradmoss]

Another great video!! Do you ever factor pension income into your video scenarios?

[sanjaypatelmd]

I am 55 have 63 million in stocks and bonds and 3 homes and cars worth 12 million dollars….i am nervous retiring

[joemyers]

Good video to get people thinking about calculating what they will need in retirement. Plus they can adjust their numbers from your example to make their own spreadsheet. I caught a little math error though when I did this. You only need $434, 078 in total from 55 to 62, which is the total desired income adjusted each year after year by 3%. You took the total inflation impact of $12, 643 and multiplied by 7, instead of just adding each year's total inflation adjusted amounts for the 7 years. Year 1 income = $55, 000, Year 2 income = $56, 650, Year 3 income = $58, 349.50 ... Year 7 = $67, 643.06 and then just add all 7 of those incomes together. Right?

[tz]

I like how you went backwards for this to figure out how much you need to retire at 55. In your example, do you run out of money at 72? I know social security is still there, but are retirement savings gone at 72 in your example?

[daveharness]

Great video. Perhaps you covered it...but did you account for COLA on SS?

[TheFirstRealChewy]

Challenge: Pay yourself as much as you pay Uncle Sam. Save and invest as much as you pay in taxes each year (Federal, State, Local and FICA).

If you can pull that off you'll be wealthy.

[ronloftis]

Well, this is me...only age 65 to age 70 as I am delaying taking SS til age 70 and taking IRA / 401k distributions and doing Roth Conversions in those 5 years.

[tomg]

I read all the comments, but I'm still confused as to how the 65, 103 (62 to 72) equals 1, 136, 379 over 10yrs. To me it should be 651, 030. Bringing the total to 473, 501+651, 030 = 1, 124, 531 over the age 55 to 72. No? You mention in another comment "future cash flow calculation" and to age 100? Curious because I am 55. thanks.