At age 62, with $890,000 in a 401(k) and $115,000 in a Roth IRA, you can likely generate enough income to cover typical retiree lifestyle expenses, along with Social Security benefits. Waiting to claim Social Security can increase benefits, and your investment strategy can impact your nest egg’s growth significantly.

Using the 4% safe withdrawal guideline, you could withdraw $40,200 the first year of retirement, increasing annually with inflation. Combining this with Social Security could provide $69,708 annually. Waiting until age 70 to retire could increase the safe withdrawal amount to $86,172, creating a larger annual income stream.

Many planners estimate retiree living expenses as 75% of pre-retirement income. Individualize your retirement budget by assessing current expenses and adjusting for post-retirement changes. Consider factors like healthcare costs, travel, and taxes, which may differ in retirement. A financial advisor can help you create a personalized plan.

Maintain an emergency fund for unexpected expenses, and consider a high-interest account to earn compound interest. SmartAsset’s tools, like the RMD Calculator, can help you plan for required minimum distributions. For financial advisors, SmartAsset AMP offers a way to connect with leads and automate marketing efforts.

Ensure your retirement budget accounts for various factors, such as income sources, investment strategies, and expected expenses. Consulting with a financial advisor can help you create a solid retirement plan tailored to your specific needs and goals. Start planning now to secure a comfortable and financially stable retirement.

Read more at Yahoo Finance: I’m 62 With $890k in a 401(k), $115k in a Roth and Social Security. What’s a Realistic Retirement Budget?