Retiring at 65 with $2.5 million in savings is likely to provide a comfortable lifestyle for most people, says financial services firm Fisher Investments. However, the amount needed for retirement depends on factors such as location, health, and hobbies. A mix of stocks, bonds, and real estate can help protect against market volatility. It’s important to budget for medical expenses if you have health issues or expensive hobbies. Overall, $2.5 million is a good starting point for a comfortable retirement, but individual circumstances should be taken into account.
Is 2.5 Million Enough to Retire at 65?
Retirement is a time when most people want to relax, travel, and enjoy the fruits of their labor. However, it can also be a time of financial uncertainty, especially if you haven’t planned well. One of the most common questions people ask is whether $2.5 million is enough to retire at 65.
For most people, it will be little or no problem to retire at age 65 if they have $2.5 million in savings. This amount of capital invested prudently is likely to provide sufficient income for a lifestyle comfortable enough to satisfy a large majority of retirees. However, the amount needed to retire comfortably depends on several factors, including your lifestyle, health, and location.
Factors to Consider
It’s important to consider your lifestyle when planning for retirement. If you plan to travel extensively, have expensive hobbies, or live in an expensive city, you may need more than $2.5 million to maintain your standard of living. Similarly, if you have health issues that require expensive treatments or care, you may need to budget more for medical expenses.
Location is also an important factor to consider. The cost of living varies widely depending on where you live. If you live in a city with a high cost of living, you may need more money to cover your expenses. On the other hand, if you live in a rural area with a lower cost of living, you may be able to retire comfortably with less money.
Investment strategies are another factor to consider when planning for retirement. Investing in a mix of stocks, bonds, and real estate can provide a diversified portfolio that can help protect against market volatility. It’s important to work with a financial advisor to develop an investment strategy that aligns with your goals and risk tolerance.
Retirement can be a time of financial freedom and relaxation, but it’s important to plan well. While $2.5 million is likely to be enough for most people to retire comfortably at age 65, it’s important to consider your lifestyle, health, and location when planning for retirement. Investing in a diversified portfolio and working with a financial advisor can help ensure that you have enough money to live the retirement lifestyle you want.
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