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As millions of working Americans race to save enough for retirement, you may wonder how you’re doing compared to the rest of the crowd.
While Americans now consider $1.46 million the magic retirement savings number (according to a 2024 Northwestern Mutual survey), the reality is many are far short of that sum.
As of 2022, the median retirement account balance among savers aged 45 to 54 was $115,000, according to the Federal Reserve’s Survey of Consumer Finances. This means if you’re 50 years old with $500,000 in savings, you’re clearly pacing ahead of your peers.
Ultimately, though, your best bet is to understand what $500,000 in savings will do for you in the context of the retirement you want. Here are some steps to take to determine whether you’re all set with $500,000 in savings, or if you ought to be boosting your nest egg considerably.
It’s easy to get overwhelmed when dealing with a big number like $500,000, so it’s important to break down what that might mean in terms of annual retirement income. Financial experts have long advocated using the 4% rule, which has you withdrawing 4% of your savings balance your first year of retirement and then adjusting subsequent withdrawals for inflation.
If we apply this percentage, a $500,000 nest egg allows for $20,000 of annual income initially. That figure will then increase modestly from year to year to account for inflation.
Let’s imagine you’re looking at $23,000 a year in Social Security benefits like the typical retired worker today, plus $20,000 a year from your savings for a total of $43,000. Will that be enough for you to retire without stress? It depends on the type of retirement you want.
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As of the second quarter of 2025, Americans aged 65 and over had a median annual income of about $62,296, according to the Bureau of Labor Statistics. Limiting yourself to just $43,000 could therefore leave you with a shortfall — unless you intend to live frugally and have minimal needs and expenses. So rather than getting caught up in averages, try to estimate what your annual expenses might amount to.
Of course, there are two big factors you’ll want to account for:
Taxes. Unless you have your savings in a Roth IRA or 401(k), your withdrawals will be subject to taxes, as might your Social Security benefits.
Health care. In 2023, the typical 65-year-old could expect to spend $157,500 on health care expenses throughout retirement, according to Fidelity. In 2024, the standard monthly cost for Medicare Part B alone is $174.70.
Speaking of retirement accounts, if you find that you’d like to grow your retirement fund, investing in gold may be an option to help you grow your nest egg. American Hartford Gold can help you set up a self-directed gold IRA, which combines the tax advantages of an IRA with the inflation-resistant properties of gold.
Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
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Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
The savings you bring into retirement may not be the only income you have access to once your career has ended. You may be eligible for a pension through your former employer, or get rental income from a property you own.
And don’t forget Social Security. Contrary to rumors, the program is not in danger of going away. And while benefit cuts are a possibility, lawmakers have never let those happen before, so they may be avoidable once again. The typical retired worker today collects about $1,915 a month in Social Security, but you can get an estimate of your anticipated retirement benefit by creating an account on SSA.gov.
Ultimately, you may run the numbers and determine that you’re on track for a stress-free retirement with $500,000 in savings. Or, you may decide that it’ll take a larger savings balance than that to enjoy the lifestyle you want.
The good news is that if you’re 50 years old, you may easily have another decade and a half of earning years ahead of you. And being 50 means that you’re eligible to make catch-up contributions to an IRA or 401(k). So if, after crunching the numbers, you feel that $500,000 won’t be enough to buy you a stress-free retirement, you have plenty of time to boost your nest egg accordingly.
There are a few low-risk ways to save more efficiently and bulk up your savings if you feel behind on your goal.
Just as little acorns grow into mighty oaks, small investments with Acorns can become a lifestyle boost in retirement.
Acorns is an automated investing and saving app that lets you save and invest while you spend. When you make a purchase on your credit or debit card, Acorns will automatically round up the price to the nearest dollar and put the remaining spare change into a smart investment portfolio. This way, even the most essential spending translates to money saved.
Sign up now and you can get a $20 bonus investment. This is an easy way to grow your wealth without even thinking about it, even after you retire.
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This article originally appeared on Moneywise.com under the title: I’m 50 years old and have $500K in savings — is that enough to retire stress-free?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
