You're 62 Years Old With $1 Million Saved: Can You Retire?
The answer depends on several factors. The key is to create a plan that combines all aspects of retirement — income, taxes, health care and legacy planning.


“How much do I need to retire?” People frequently ask me that question, which I addressed in a previous Kiplinger article, How Much Do You Need for a Comfortable Retirement? In that article, I explained that how much you will need in retirement depends on many factors, including how much you will receive in Social Security benefits, whether you have a pension, how much you need to cover day-to-day expenses, etc.
Many people come to the conversation believing that everyone needs $1 million saved before retiring. Whether that’s true or not also depends on several factors.
Let’s look at an example. John and Jane are married. Both are 62 years old, and they have $1 million saved for retirement. Based on his work history, John’s projected monthly Social Security benefit will be about $3,000, while Jane will receive about $1,500 in monthly benefits due to the spousal benefits rule within Social Security. Neither of them has a pension. (The details in this example have been updated.)

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The couple are ready to retire after 40 years of working. They say they need $6,000 in monthly income to live their desired lifestyle in retirement. If that’s the case, they will need to withdraw an additional $1,500 per month from their retirement accounts.
Looking ahead
During our analysis, we also see that John and Jane will likely have an excess amount of retirement savings when they pass away. They may want to consider either spending more money now or putting together a legacy plan indicating where the money should go when they’re gone. They will likely also want to consider other factors — such as future health care or long-term care needs, when deciding how much to take from their accounts each month.
Now, let’s use a similar scenario in which John and Jane say they need $10,000 per month in income. That same $1 million likely won’t stretch as far, and we may have to explore other options for the couple. They may need to work longer, work part-time in retirement, or live on less in retirement to accomplish their goals. When we work with families like John and Jane, we examine all scenarios to determine which options will help them avoid running out of money in their later years.
Investors with more than $1 million saved may want additional strategies to pay less in taxes and mitigate risk within their portfolio. One area we look at is required minimum distributions (RMDs). These are annual withdrawals the IRS says you must take from your qualified retirement accounts when you turn 73 or 75 (depending on your year of birth).
RMDs could push you into a higher tax bracket
Since RMDs are counted as ordinary income, they are taxable and could force you into a higher tax bracket. This, in turn, could result in up to 85% of your Social Security benefits becoming taxable as well. The higher income could also force you to pay higher Medicare premiums. This means diligent savers may end up paying more for medical care in retirement than those who haven’t saved as much (however, just because you pay more doesn’t mean you get more or better care!). We typically start by looking at our client’s total taxable retirement income and deploying strategies to reduce their tax bill.
The key to making these strategies work is to proactively create a plan that combines all aspects of your retirement — income, taxes, health care, and legacy planning — together. Maybe you already have $1 million saved, and you’re wondering if you can retire now. Or maybe you’ve waited to start planning for retirement and want to ensure you’ll have enough. Whatever your scenario, making decisions now can set you up for success later.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Related Content
- How to Retire Early in Six Steps
- Should You Keep Your 401(k) When You Retire?
- How a Roth Conversion Can Spare You From Medicare’s IRMAA and Taxes
- Are You a DIY Retirement Planner? Four Things You Need to Know
- Do You Have the Five Pillars of Retirement Planning in Place?
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joe F. Schmitz Jr. is the founder and CEO of Peak Retirement Planning, Inc. He built a firm that focuses on serving those in "The 2% Club" by providing their 5 Pillars of Pension Planning, which includes tax-efficient strategies, investment management, income planning, health care planning and estate planning. Joe is a CERTIFIED FINANCIAL PLANNER™ professional and Chartered Financial Consultant®. Known as a thought leader in the industry, he is featured in TV news segments and is the author of the best-selling books I Hate Taxes (request a free copy) and Midwestern Millionaire (request a free copy).
-
Stocks Struggle to Start Nvidia Week: Stock Market Today
Another important week for the stock market starts on a risk-off note.
-
Gen X? Challenges Lie Ahead as Retirement Nears
Tapping home equity and working longer are key strategies that can help overcome a savings shortfall.
-
I'm a Financial Pro: Why You Shouldn't Put All Your Eggs in the Company Stock Basket
Limit exposure to your employer's stock, sell it periodically and maintain portfolio diversification to protect your wealth from unexpected events.
-
How Will the One Big Beautiful Bill Shape Your Legacy?
The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
Nvidia Earnings: Live Updates and Commentary August 2025
Nvidia's earnings event is just days away, and market participants are zeroed in on the AI bellwether's quarterly results.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs In
There isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.
-
Three Things Financially Confident People Do, From a Pro Who Knows
If you have any worries about your retirement future, take back control with these three tips.
-
Retire in This Island Country for That 'Permanent Vacation' Feeling
This English-speaking island nation offers a luxury retirement at a bargain price.