“Please be kind – I’m actually really scared about the possibility of losing my job.” (The subject of the photo 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 almost $2 million in retirement, investments and savings. I don’t have a house. My monthly expenses are around $6,000, which includes rent. Can I retire at 50? What about health insurance? Please be kind – I’m actually very scared about the possibility of losing my job.
50 years
Related: 2025 was one hell of a year. Consumers should expect more “silent pain” in 2026.
I’m curious how much of your $6,000 monthly expenses go toward rent, as that will be your biggest and most unpredictable challenge – MarketWatch Illustration
You face some headwinds if you hang up your boots in 2026. If this job goes south, find another one and look to buy a house.
You haven’t lost your job (yet). It’s not something you have control over, and while I know it’s anxiety-inducing, companies go through restructuring every few years. The only thing you have control over is you, your work and your ideas. That way you can, in theory, help stay in touch with the proverbial flood line. I’m curious how much of your $6,000 monthly expenses go toward rent, as that will be your biggest and most unpredictable challenge.
If you’re a victim of the reorganization, you have two things going in your favor: First, you have $2 million saved for retirement, which is a lot more than most people in their 50s. If you take 4% of your portfolio over the next 30-40 years, assuming you have $2 million in stocks, you’ll get $6,667 a month or $80,000 a year. That’s enough to see you through more than 35 years, but be prepared for a few years down the market. A severe market correction in those early years would hurt.
Add Social Security to your midterm retirement plan. Because you were born after 1971, your full retirement age is 67. Then you get 100% of your main benefits. The earliest you could have claimed pension 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 that grow each month until age 70 by about 8% per year.
You are also young enough to find another job, perhaps more fulfilling or less stressful, and work another 10-15 years. A word of caution: Studies show that it becomes more difficult to find work after 50. Some hiring managers may have unconscious biases and may even be younger than you. Because of this, job seekers over 50 often hide their age on their CVs 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. Historically, it has been able to support people for at least 30 years. There are no guarantees, especially since 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” — to the extent that there is one — surpassed $1 million in 2021 and stands at about $1.26 million, which is actually down from $1.46 million, according to a recent survey by Northwestern Mutual. That’s based on a survey of how much money people credit they will have 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 disappear).
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. This has already led to increased costs for those with insurance plans purchased on the ACA (also called Obamacare) exchanges. Premiums could increase by an average of 115% in 2026, according to an analysis by KFF (rising from an average of $888 per month in 2025 to $1,904 in 2026).
On the face of it, it seems ridiculous – especially to readers who have a fraction of what you have – to say that retiring at 50 (even involuntarily) would be a big ask if you had $2 million saved up. But your health insurance costs will be a big consideration before you qualify for Medicare at age 65. Look at full-time/part-time work in addition to $6,000 in monthly expenses.
Don’t miss: “It’s my money”: My $800,000 inheritance pays for a $1.6 million house. Shouldn’t I decide where my husband and I live?
Previous columns by Quentin Fottrell:
“I’m completely disgusted by the lack of responsibility”: I bought a mulberry mattress—twice. How can I get my money back?
“The value of his house quadrupled”: I bought a house with my brother, but he did not contribute. How do I fix this?
‘I feel like this is doing us a disservice’: My brother wants his $1 million inheritance up front. Should they pay interest?
