How Much Do I Need to Retire at 50? Your Quit Number Explained
· 4 min readWhy 50 Is the Sweet Spot
Retiring at 50 is the Goldilocks zone of early retirement. You're young enough to enjoy decades of freedom. You're old enough that Social Security and Medicare are within reasonable reach. And you've had 25-30 working years to build wealth.
The math is significantly more forgiving than retiring at 40. You need to fund 12-17 fewer years from your portfolio before Social Security supplements your income. That makes the required savings lower and the success rate higher.
Your Number by Spending Level
Retire-at-50 targets using 25x annual expenses (4% withdrawal rate):
$3,500/month ($42,000/year)
FIRE number: $1,050,000
Modest but comfortable. Works well in mid-cost-of-living areas. Covers housing, food, transportation, health insurance, and basic entertainment. This is achievable on a median household income with consistent saving.
$5,000/month ($60,000/year)
FIRE number: $1,500,000
The most common target for retire-at-50 planners. Comfortable lifestyle with room for travel, hobbies, dining out, and a decent health insurance plan. No extreme frugality required.
$7,000/month ($84,000/year)
FIRE number: $2,100,000
Very comfortable. Nice housing, regular vacations, generous hobby budget. Provides significant cushion against unexpected expenses and market downturns.
$10,000/month ($120,000/year)
FIRE number: $3,000,000
Premium early retirement. No compromises on lifestyle. Typically requires a high-income career (top 10%) with disciplined savings over 25+ years.
The Social Security Bridge
Here's where retiring at 50 has a massive advantage over retiring at 35 or 40: Social Security is only 12-17 years away.
What this means for your number
If you expect $2,000/month in Social Security at age 62 (or $2,800/month at 67), that's $24,000-33,600/year your portfolio doesn't need to provide permanently. It only needs to cover your full expenses for 12-17 years, then partially cover them for the rest of your life.
This effectively reduces your long-term FIRE number. With $2,000/month from Social Security starting at 62:
- Your portfolio covers $5,000/month → $3,000/month after 62
- Pre-62 FIRE number: $1,500,000 (based on full expenses)
- Post-62 effective FIRE number: $900,000 (Social Security covers the rest)
In practice, this means your portfolio has a natural "relief valve" that kicks in at 62. It doesn't need to survive 40+ years at the full withdrawal rate — only 12-17 years at the full rate, then a reduced rate for the remainder.
Don't count on exact numbers
Social Security benefits may be adjusted by Congress. Use your Social Security statement (available at ssa.gov) as a rough guide, but plan as if it might be 20-25% less than projected. Even with a haircut, it significantly helps the math.
The Healthcare Gap: Ages 50-65
The gap between retiring at 50 and qualifying for Medicare at 65 is 15 years. This is the most important cost to plan for.
ACA Marketplace
The most common solution. Costs vary by state, age, and income level:
- Age 50, individual: $400-700/month without subsidies
- Age 50, family: $1,000-2,000/month without subsidies
- With income-based subsidies: Often 40-60% less
The subsidy trick for early retirees: keep your Modified Adjusted Gross Income (MAGI) moderate by withdrawing from Roth accounts (not taxable income) and managing capital gains. A 50-year-old with $2 million invested can often maintain a MAGI of $50,000-60,000 while spending more, qualifying for meaningful subsidies.
COBRA (first 18 months)
You can continue your employer's plan for 18 months through COBRA. It's expensive (you pay the full premium) but useful as a bridge while you set up ACA coverage.
Budget it in
Whatever route you choose, include health insurance in your monthly expenses before calculating your FIRE number. Don't let it be an afterthought. For a family retiring at 50, health insurance costs $12,000-24,000/year — that's $300,000-600,000 of your FIRE number attributed to healthcare alone.
Starting at Different Ages
How much do you need to save each month to retire at 50? It depends on when you start and what you already have.
Starting at 25 (25 years to go)
With zero savings and 7% real returns, you need a 35-40% savings rate. On a $70,000 salary, that's investing $2,000-2,300/month. Extremely achievable — you have the luxury of time and compound growth.
Starting at 30 (20 years to go)
With $50,000 saved, you need about $2,500-3,000/month in new investments. A 40-45% savings rate on a growing income. Still very doable.
Starting at 35 (15 years to go)
With $150,000 saved, you need about $3,500-4,000/month. This requires either a higher income or more aggressive expense reduction. A 45-50% savings rate.
Starting at 40 (10 years to go)
With $300,000 saved, you need about $5,000-6,000/month. This is aggressive but possible with dual incomes or a high-earning career. A 50-60% savings rate, typically achievable in peak earning years.
Starting at 45 (5 years to go)
With $700,000 saved, you need about $6,000-8,000/month to close the gap. This is sprint territory — maximizing 401(k) catch-up contributions, cutting all discretionary spending, and directing bonuses and raises entirely to savings. Tight but possible for high earners.
Why 50 Beats 65
Even if you can't retire at 35 or 40, retiring at 50 gives you 15 years of freedom that most people spend in their cubicle. That's 15 years of:
- Traveling while you still have energy and health
- Spending time with aging parents
- Being present for your kids' teenage years and early adulthood
- Pursuing interests that never fit into evenings and weekends
- Reducing stress-related health problems
15 years is not a consolation prize. It's a fundamentally different life than working until 65.
Find Your Path
Calculate your Quit Number to see when you can realistically retire. If it's 50, you now have a concrete plan. If it's 47 or 53, that's just as valuable — you know exactly where you stand and what moves your timeline forward.
The best time to plan for freedom at 50 was 10 years ago. The second-best time is today.