Can You Retire at 60 with $1.5 Million? Here’s What It Could Look Like

If you’re nearing 60 and wondering whether your savings can carry you comfortably through retirement, you’re not alone. For many Americans, the big question isn’t just if they can retire, but how their retirement will actually play out. The answer isn’t one-size-fits-all. It depends on your lifestyle, spending goals, health care needs, and investment strategy.

In this article, we’ll walk you through the real-life story of a client couple we’ll call Jim and Susan. They had just reached 60 with $1.5 million saved. You’ll see how we evaluated their finances, adjusted their plan, and increased their confidence that they could not only retire now, but enjoy life on their terms.

Meet Jim and Susan

Jim and Susan had worked hard for decades, built up a healthy nest egg, and were eager to start a new chapter. But before they made the leap, they wanted to know:

1. Could they afford to retire now?

2. Would their savings last?

3. What changes, if any, should they make to improve their odds?

Step 1: Breaking Down the $1.5 Million

The first thing we did was divide their savings into taxable and tax-deferred assets.

• Taxable assets are investments funded with after-tax dollars. Withdrawals in retirement aren’t taxed again.

• Tax-deferred assets (such as 401(k)s and traditional IRAs) are funded with pre-tax dollars, meaning withdrawals will be taxed as income.

Jim and Susan had:

• $342,000 in taxable investments (joint survivorship account)

• $1.1 million in tax-deferred accounts ($662,000 in Jim’s accounts and $504,000 in Susan’s)

Knowing how much of their retirement income would be taxable was key to accurate planning.

Step 2: Defining Retirement Goals

Retirement planning isn’t just about covering basic needs; it’s about designing the lifestyle you want.

For Jim and Susan, that meant budgeting for:

• Needs: Living expenses and healthcare

• Wants: Frequent travel and visits to their new grandbaby in Seattle

They set their annual living expenses at $78,000 (about $6,500/month). We accounted for inflation by planning for about a 2.5% increase each year, because $78,000 today won’t stretch as far 20 or 30 years from now.

Step 3: Accounting for Healthcare Before Medicare

Because they wanted to retire immediately at 60, Jim and Susan faced a five-year gap before Medicare eligibility at 65. We estimated private health insurance at $20,000/year for both of them. This was more than double the cost of Medicare.

Some people delay retirement to keep employer coverage longer, but Jim and Susan were firm: they wanted out of the workforce now. So, we built the extra expense into their plan.

Step 4: Travel and Family Time

Travel wasn’t a negotiable item – it was part of what made retirement worth it for them. They budgeted $36,000/year ($3,000/month) for adventures abroad and family trips to see their grandbaby.

Step 5: Planning for Longevity

We planned for Jim to live to 90 and Susan to 92 – three years longer than the national averages – to help ensure they wouldn’t outlive their money. But, since a retirement plan is never static, we built in the flexibility to adjust if they lived even longer.

Step 6: Testing the Plan

To see how their plan might perform under different market conditions, we ran 1,000 simulations, each representing a potential future.

The results? 58% probability of success. This means they’d have money left at the end in just over half of the scenarios. Good, but not in our preferred “confidence zone” of 75–90%.

Step 7: Making Adjustments

We looked at three levers to improve their odds:

1. Investment allocation

2. Social Security strategy

3. Monthly spending

Investment Allocation

By slightly increasing their exposure to equities (while staying in a capital preservation risk profile), their success probability rose to 70%. Better, but still not enough.

Social Security Timing

Initially, Jim and Susan planned to start Social Security at 62. But delaying until their Full Retirement Age boosted their probability to 89% and increased their lifetime Social Security benefits by $340,000.

This change put them in the confidence zone without cutting spending.

Step 8: Fine-Tuning with the Play Zone

We also gave them access to our Play Zone tool, which lets clients test changes in real time. For example, if they reduced travel spending from $3,000/month to $2,000/month, their probability would jump to 98%.

This flexibility showed them they had control and could shift priorities if need be.

The Takeaway

So, can you retire at 60 with $1.5 million? Yes, but the details matter.

Jim and Susan’s plan works because it’s tailored to their goals, accounts for taxes and inflation, and adjusts for longevity and market uncertainty. Your retirement plan might look different, but the process is the same: define your goals, test your plan, make adjustments, and revisit regularly.

Ready to see what your retirement could look like?

At The Noble Group, we help clients build confident, flexible retirement plans tailored to their lifestyle and goals.

Email us today at education@thenoblegroup.com to schedule your complimentary retirement review and start planning the life you’ve worked for. Or, you can reach out to us via phone or contact form via our “Contact Us” page.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your financial advisor prior to investing.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.

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