Can I Retire at 67 With $2.5M?

Is $2.5M Enough to Retire at 67?

The 4% rule — pioneered by financial planner William Bengen in 1994 and validated by the Trinity Study — suggests withdrawing 4% of your portfolio in Year 1, then adjusting for inflation annually. With $2,500,000, that's $100,000/year or $8,333/month. The average retired household spends $4,065/month (2022 BLS Consumer Expenditure Survey). At this portfolio size, you have a 4,268/month cushion above average expenses.

Withdrawal Rate Comparison

How Long Will It Last?

Retiring at 67 means a 18-year retirement to age 85 (average life expectancy for a 67-year-old is actually higher — about 87 for women, 84 for men). At 4% withdrawals with 7% average investment returns and 3% inflation, a $2.5M portfolio historically lasts 30+ years in 90%+ of historical market scenarios. The risk: early retirement (pre-60) spans more market cycles.