Is Saving $1 Million Enough for Retirement?
You might think that saving $1 million for retirement means you can coast through your golden years without financial worry. But the reality is often more complicated. Depending on where you choose to retire and the lifestyle you hope to enjoy, that $1 million nest egg could last anywhere from just over 10 years to nearly two decades after you hit 60.
Why Location Matters
If you picture retirement as endless rounds of golf, fancy dinners, and maybe that dream vacation you always postponed, then you need to consider geography. Your cost of living will play a huge role in how far your $1 million goes. In states with high housing, utilities, and grocery costs—like Hawaii — you could blow through that money in just about 10 years, according to CBS News. But if you head to a more budget-friendly state like Mississippi, you could stretch that same $1 million into nearly 23 years, simply because day-to-day expenses are that much lower.
The Bigger Picture in the US
On average, $1 million covers about 18.9 years of living expenses for retirees nationwide, as reported by CBS News. Think about it: If you retire at 65, you might make it into your 80s on that amount, assuming your spending habits stay consistent. But if you live longer or your expenses spike — say, due to healthcare costs or inflation — you could still run short.
Adding to the challenge, many Americans are not starting anywhere near that $1 million mark. One analysis shows that baby boomers have a median of about $120,000 in retirement savings, and nearly 30% of those 59 or older have saved nothing, according to CBS News.
The Reality of Rising Costs
Many retirees now face the possibility of living more than 25 years after they stop working. Meanwhile, CBS News reports Americans surveyed said they might need about $1.8 million to feel truly comfortable. The question remains: Is $1 million enough for you?
There's no single answer. Variables like your personal spending habits, home base, and the impact of inflation all matter. You'll need to consider these factors rather than relying on the $1 million figure as a universal benchmark.
Making Your Money Last
A common guideline suggests needing about 80% of your pre-retirement income each year. If you earned $100,000 annually, that's roughly $80,000 in retirement. Under a 4% withdrawal rule, $1 million translates to an initial $40,000 a year — only half of what you might want, as reported by Empower.
Adjustments can help. Maybe you move to an affordable area, work part-time, or rethink your investment strategy. Some retirees keep a portion of their portfolio in stocks to chase higher returns, though they risk volatility. Others rely on Social Security, pensions, or smaller side gigs to stretch their savings further.
Considering Other Income Streams
If you have pensions, Social Security, or part-time work, that extra income can reduce how much you withdraw from savings and help your money last longer.
Thinking Ahead
In the end, the length of time $1 million lasts depends on you — where you live, how you spend, and how you invest. Instead of focusing on hitting a single number, start planning early, set realistic goals, and keep flexible as your needs change. With the right approach, your retirement can be about more than just the math — it can be about living comfortably on your own terms.
References: Saved $1 million for retirement? Here's where your money will last the longest around the U.S. | Can you retire with a million dollars?
