In your 60s

retirement savings 65

The golden years are close. When Joe retires at age 65, he is making $80,000 a year. That means he should be able to quit his 9-to-5 gig with a $960,000 nest egg that should be able to give him $56,000-$64,000 in yearly income for the next 30 years.

How to withdraw your savings: Until age 59 1/2 , you'd be hit with a penalty for withdrawing from your retirement accounts. But now you're in the clear. You can withdraw whatever you like from your 401(k) or your IRA accounts penalty free.

You have to start to make withdrawals from a 401(k) and a Traditional IRA at age 70 1/2 . The amount depends on how much you have saved and your life expectancy, according to tables published by the IRS.

First published December 6, 2018: 4:08 PM ET
Source: Calculations come from Charlie Farrell, CEO at Northstar Investment Advisors. Figures target a 70% to 80% pre-retirement income replacement at age 65 for an assumed 30-year retirement. It assumes Social Security will account for 20% of retirement income, a 3.5% return on investments, and a withdrawal rate between 4% and 5% annually in retirement.

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