The average American aged 65 to 74 has about $609,000 saved for retirement, while the new “magic number” Americans believe they’ll need is $1.26 million. Applying the 4% rule to $550,000 in savings results in an annual income of $22,000. Social Security benefits can add $24,000 per year, but average spending for that age group is $65,150 annually, creating a potential shortfall of $19,000.

Strategies to stretch a $550,000 nest egg include minimizing tax payments, contributing to Roth accounts, and considering a Roth conversion. Roth IRAs offer tax-free withdrawals in retirement, and SoFi offers commission-free investing with up to $1,000 in stock for new accounts. Another option is the backdoor Roth IRA method for high-net-worth individuals.

Delaying Social Security benefits until age 70 can increase monthly payments by 8% per year, providing larger benefits to reduce reliance on retirement savings. Downsizing, budgeting, and relocating to low-cost states like Alaska, Nevada, or Texas can also help stretch savings. Rocket Money and OfficialHomeInsurance.com offer tools to simplify budgeting and find cost savings.

Read more at Yahoo Finance: I can retire at 66 with $550,000 in the bank and not a penny more. How do I make it last?