I will be 50 years old this year. My company is undergoing a reorganization and there may be layoffs soon. I have nearly $2 million in retirement, investments and savings. I don’t have a house. My monthly expenses are about $6,000, including rent. Can I retire at 50? What about health insurance? Please be kind – I’m actually really scared of the possibility of losing my job.
50 years old
Related: 2025 is a hell of a year. In 2026, consumers should experience more “silent pain.”
If you hang up your boots in 2026, you’ll face some serious headwinds. If this job goes well, find another job and consider buying a house.
You haven’t lost your job yet. It’s not something you can control, and while I know it creates anxiety, companies reorganize every few years. The only things you can control are yourself, your work, and your thoughts. In theory, this is how you can help stay near the proverbial flood line. I’d be interested to know how much of your $6,000 monthly expense goes toward rent, as that will be your biggest and most unpredictable challenge.
If you do fall victim to a restructuring, you have two things working in your favor: First, you have $2 million in retirement savings, which is far more than most 50-year-olds. If you withdrew 4% from your portfolio over the next 30-40 years, assuming you had $2 million in stocks, you would receive $6,667 per month or $80,000 per year. That’s enough to get you through more than 35 years, but be prepared for a few years when the market is down. Severe market corrections in earlier years can hurt.
Add Social Security to your mid-term retirement plan. Since you were born after 1971, your full retirement age is 67. You will then receive 100% of the main benefits. The earliest you can receive a pension is age 62, but this will permanently reduce your benefit (by up to 30%). If you wait until you get your FRA to take delayed credits, those credits will increase each month until age 70, about 8% per year.
You’re still young enough to find another job that might be more fulfilling or less stressful and stay there for another 10-15 years. Something to note: Research shows that finding a job becomes more difficult after age 50. Some hiring managers may have unconscious biases and may even be younger than you. As a result, job seekers over the age of 50 often conceal their age on their resumes in order to get through.
The 4% rule is based on historical market returns, including 60% stocks and 40% bonds, and is adjusted for inflation. Historically, it has been supporting people for at least 30 years. There are no guarantees, especially since I’m assuming the $2 million is 100% invested in stocks (at your age, 50%-60% of your portfolio in stocks would be considered moderate risk, but that depends on your risk tolerance). Since your retirement horizon is at least 35 years, a 4% withdrawal rate is relatively aggressive.
According to a recent Northwestern Mutual poll, that “magic number” (for now) will be over $1 million in 2021, around $1.26 million, and actually lower than $1.46 million. This is based on a survey about how much money people make believe They need to retire at age 65. This is also influenced by lifestyle – do you want to go on vacation in retirement or explore cost-effective leisure activities? – and fees (your rent is unlikely to disappear).
Another big expense if you retire early: health insurance. President Donald Trump’s BEAUTY Act allows for the expiration of generous tax subsidies that help pay for health insurance. This has led to increased costs for those who buy insurance plans on the ACA exchanges, also known as Obamacare. According to KFF’s analysis, the median premium could rise 115% by 2026 (from an average of $888 per month in 2025 to an average of $1,904 per month in 2026).
On the surface, it seems absurd to say that retiring at 50 (even involuntarily) would be a big deal if you’ve saved $2 million — especially to readers who have only a fraction of what you have. But before you become eligible for Medicare at age 65, the cost of your health insurance will be an important consideration. Unless you decide to move to smaller or lower-cost apartments and neighborhoods, your rent will also increase with or above inflation. In addition to cutting $6,000 a month in expenses, consider a full-time/part-time job.
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Previous columns by Quentin Fottrell:
“I was so disgusted by the lack of responsibility”: I bought a crappy mattress — twice. How can I get my money back?
“The house quadrupled in value”: My brother and I bought a house, but he didn’t put up the money. How can I solve this problem?
‘I feel like it’s hurting us’: My brother wants early access to his $1 million inheritance. Should he pay interest?