I'm 65 with $2.2 million in real estate and $915,000 in retirement accounts. Can I finally retire?

July 18, 2026 - 07:11

Amy spent decades building a net worth of more than $3 million, but a recent layoff has shaken her confidence and left her second-guessing every financial decision she ever made. At 65, her balance sheet looks impressive on paper: $2.2 million in real estate and $915,000 in retirement accounts. The real question, however, is whether any of that money can actually cover her day-to-day expenses.

The bulk of her wealth is tied up in property, which means she cannot easily spend it on groceries or medical bills unless she sells or rents it out. Her retirement accounts are substantial, but they still need to last for what could be 20 or 30 more years. Without a steady paycheck, she is now facing the math of withdrawals, taxes, and the cost of health insurance before Medicare kicks in fully.

Financial planners often point out that a person in Amy's position needs to look at cash flow, not just total net worth. If her real estate generates rental income, that could bridge the gap. If it does not, she may need to downsize or sell one property to free up liquid cash. The layoff, while stressful, may actually force her to make the retirement decision she has been putting off for years. With careful planning, the numbers suggest she can stop working, but only if she is willing to shift her mindset from accumulating wealth to spending it.