I’m 35, have $2.5M saved and own property that brings in $3K/month — am I out of line to think about retiring now?

Rosie has saved $2.5 million, an amount that many Americans can safely retire with.

In fact, she has more: Americans say they think they need $1.26 million to retire comfortably, according to a 2025 study. (1)

However, there is a problem. Rosie is only 35, so her million dollars will only last for a few decades.

When to retire is one of the most controversial questions in the personal finance world. No matter your age or savings level, there’s a lot to consider before heading into retirement.

So, should Rossi retire?

Rossi’s situation was clearly not normal. But thanks in part to the popularity of the FIRE (Financial Independence, Retire Early) movement, some Americans may find themselves wondering whether they can start their golden years decades earlier than most.

Rossi had early success as an entrepreneur. She started her business in her early 20s and has been saving aggressively since graduating from school. When someone offered to buy her business for $3 million, she accepted the payment.

While Rosie doesn’t plan to spend the rest of her life on the beach, she feels ready to step away from her grueling schedule and constant business stress. She sees herself devoting her time to volunteering and mentoring young business women.

She purchased a rental property and netted approximately $3,000 per month after fees and maintenance. She doesn’t plan to live a lavish life, but she’s not sure her $2.5 million in savings plus rental income will be enough to sustain her for the rest of her life.

Read more: Young millionaires are reconsidering stocks and relying instead on these assets in 2026 — here’s why older Americans should take note

One way to access your retirement savings is the “4% rule.” This involves withdrawing 4% of your savings each year in retirement, adjusted for inflation. The basis of this rule is to maintain the retiree’s retirement life for 30 years.

For Rossi, a 30-year time frame is certainly not enough. Rosie needs to plan for savings that will last 50 years or more (the average lifespan of a 65-year-old woman today is about 87 years, and that may increase in the future). If she starts withdrawing her savings now at 4%, she could run out of money by around age 70, when her golden years are in full swing.

Rosie also needs to consider that her Social Security benefits will be severely impacted by retiring early. Benefits are calculated based on the 35 years of highest earnings. If Rossi retired now, he would only have about 15 years of working life.

For Rossi, a potentially more efficient way to withdraw savings is the “multiply” rule. By determining the annual income that works for you and then multiplying that by the number of years you expect to retire, you can figure out how much you need to save.

If Rosie assumes 50 years of retirement, she can withdraw $50,000 per year. Adding in her rental income means $86,000 per year.

With such a long time to retirement, Rosie should consider consulting a financial planner to ensure her retirement savings plan covers different scenarios. She will also need to consider the tax implications of withdrawing her savings and/or selling her investments.

A financial planner can help Rosie develop an investment plan and balance her portfolio in a way that makes sense for her long-term plans. For someone of Rossi’s age, you can generally tolerate a higher ratio of stocks to bonds in your portfolio because the investments have time to withstand the ups and downs of the market.

However, if Rosie were to dip into her savings, she might decide to take a more conservative approach. She must decide what her risk tolerance is and what asset mix is ​​right for her.

She also needs to plan for unexpected expenses, such as the possibility that her rental property will need major repairs, a period of time without tenants, or future medical bills.

If Rosie is convinced her workday is over, she needs to create a balanced plan to ensure her savings last.

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Northwestern Mutual Bank(1).

This article provides information only and should not be considered advice. It is provided without any warranty of any kind.