“Please be kind — I’m actually really scared about the possibility of losing my job.” (Photo subject is a model.) – Getty Images/iStockphoto
I will turn 50 this year. My company is going through a reorganization and there may be layoffs soon. I have close to $2 million in retirement, investments and savings. I don’t own a house. My monthly expenses are around $6,000, which includes rent. Can I retire at age 50? What about health insurance? Please be kind — I’m actually really scared about the possibility of losing my job.
I’m curious to know how much of your $6,000 monthly expenses goes to rent, because that will be the biggest and most unpredictable challenge for you. – MarketWatch illustration
You face some serious headwinds if you hang up your boots in 2026. If this job goes south, find another one, and look into buying a house.
You haven’t lost your job (yet). It’s not something you have control over and, while I know it’s anxiety-producing, companies go through restructurings every few years.The only thing you have control over is yourself and your work and your ideas. That is how you, in theory, can help stay about the proverbial floodline. I’m curious to know how much of your $6,000 monthly expenses goes to rent because that will be the biggest and most unpredictable challenge for you.
If you do fall victim to the reorganization, you have two things in your favor: First, you have $2 million saved for retirement, which is far more than most people at 50. If you take 4% from your portfolio over the next 30-40 years, assuming you have $2 million in stocks, you will receive $6,667 a month or $80,000 a year. That’s enough to see you through for more than 35 years — but be prepared for some down years in the market. A severe market correction in those early years would hurt.
Add Social Security into your mid-stage retirement plan.As you were born after 1971, your full retirement age is 67. That’s when you get 100% of your primary benefits. The earliest you could have claimed retirement benefits was age 62, but that would permanently reduce your benefit (by up to 30%). If you wait until after your FRA, you earn delayed credits, which increase each month until age 70 by roughly 8% per year.
You are also young enough to find another, perhaps more fulfilling or less stressful job and work another 10-15 years. One caveat: Studies show that it gets more difficult to find work after 50. Some hiring managers may have unconscious bias and may even be younger than you. For that reason, job applicants over 50 often obscure their age on their resumes to get themselves through the door.
The 4% rule is based on historical market returns consisting of 60% stocks and 40% bonds, adjusted for inflation. It has historically been able to support people for at least 30 years. There are no guarantees, especially as I’m assuming 100% of that $2 million is in stocks (at your age, 50%-60% of your portfolio in stocks would be considered moderately risky, but that depends on your risk tolerance). Since your retirement horizon is at least 35 years, a 4% withdrawal rate would be relatively aggressive.
The “magic number” — as far as there is one — surpassed $1 million in 2021, and stands at around $1.26 million, which is actually down from $1.46 million, according to a recent poll from Northwestern Mutual. That is based on a survey of how much money people believe they will need to retire at 65. This is also influenced by lifestyle — do you want to take vacations in retirement or explore leisure activities that cost money? — and expenses (your rent is unlikely to go away).
Another big expense, if you retire early: health insurance. President Donald Trump’s Big Beautiful Bill Act allowed a generous tax subsidy to expire — a subsidy that helped defray the cost of health-insurance coverage. That has already led to increased costs for those with insurance plans purchased on ACA exchanges (also referred to as Obamacare). Premiums could rise by a median of 115% in 2026, according to an analysis by KFF (rising from an average of $888 a month in 2025 to $1,904 in 2026).
On the face of it, it seems ludicrous — especially for readers who have a fraction of what you have — to say that retiring at 50 (even involuntarily) would be a big ask if you have $2 million saved. But your health-insurance costs will be a big consideration before you qualify for Medicare at 65. Your rent will also rise with or above inflation unless you decide to move to a smaller or lower-cost apartment and neighborhood. Look at full/part-time work in addition to cutting your $6,000 monthly expenses.
