Saved $1 million for retirement? Here's where your money will last the longest around the U.S. (2024)

FAQs

Saved $1 million for retirement? Here's where your money will last the longest around the U.S.? ›

The key finding: Retirees can get the biggest bang for their buck in Mississippi, where the combined cost of food, utilities, housing, health care and other essentials is $44,000 per year. Saving of $1 million in the state would last you nearly 23 years, the personal finance site said.

A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.

In fact, statistically, around 10% of retirees have $1 million or more in savings.

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

According to a 2020 working paper from the Center for Retirement Research at Boston College, the top 1% of retirees—which a retiree with $4 million in assets would fall into—can expect to pay about 22.7% in state and federal taxes.

According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.

Specifically, those with over $1 million in retirement accounts are in the top 3% of retirees. The Employee Benefit Research Institute (EBRI) estimates that 3.2% of retirees have over $1 million, and a mere 0.1% have $5 million or more, based on data from the Federal Reserve Survey of Consumer Finances.

To be considered wealthy at age 65 or older, you need a household net worth of $3.2 million, according to finance expert Geoffrey Schmidt, CPA, who used data from the 2019 Survey of Consumer Finances (SCF) to determine the household net worth needed at age 65 or older to determine the various percentiles of wealth in ...

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

The answer depends almost entirely on you, your habits now and your plans for later,” the financial services firm noted on its website. Data from the Federal Reserve's most recent Survey of Consumer Finances (2022) indicates the median retirement savings account balance for all U.S. families stands at $87,000.

Can I retire at 60 if I have 1 million dollars? ›

It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.

It's entirely possible to live off the interest earned by a $10 million portfolio, depending on how much you need and what your investment choices are. You'll want to make sure that your lifestyle goals are in line with the income produced if you're going to make it through retirement without running out of funds.

The 4% rule suggests that a $1.5 million portfolio will provide for at least 30 years approximately $60,000 a year before taxes for you to live on in retirement.

One in six Americans retire a millionaire, but those savings didn't happen overnight. The key to saving for retirement is to start early and take advantage of compound interest (also known as interest on interest).

In the US, about 10% of retirees have $1 million or more. Given inflation, even that may not be enough. That amount is generally considered enough to provide about $40,000 per year, plus keep up with inflation, and still may run out after about 25–30 years.

According to Schwab, even if you invested in your annuity on the day of your retirement, with $1 million you can potentially collect $6,000 per month or more for the rest of your life. All of which is to say that with $1 million, you can certainly collect a comfortable amount of money in your retirement.

Most retired Americans believe they will need nearly $1.5 million in the bank to retire comfortably, according to a new study. The majority of retirees surveyed believe that they will need $1.46 million in the bank to retire comfortably, according to Northwestern Mutual's 2024 Planning & Progress Study.

It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.

Can I Retire at 60 With $1 Million Dollars? You can retire at 60 with $1 million dollars and receive a retirement income of $55,000 p.a. For 30 years if you are a couple and $70,000 p.a. for 30 years if you are single.