Wondering how much money you need to retire comfortably? Following the 4 percent rule, $2 million could provide around $80,000 per year, which is more than the average 65-year-old spends in retirement. However, it’s essential to consider factors like lifestyle, health, retirement goals, and other sources of income when planning for retirement. Consulting with a financial advisor can help determine how much money is needed to retire comfortably. Remember, taking a holistic approach to retirement planning is crucial.
Is $2 Million Enough to Retire at 67?
Retirement is a time when we want to enjoy the fruits of our labor, relax, and live a comfortable life. But the question is, how much money do we need to retire? The Bureau of Labor Statistics reports that the average 65-year-old spends roughly $4,345 per month in retirement — or $52,141 per year. But is $2 million enough to retire at 67?
The 4 Percent Rule
Following the 4 percent rule for retirement spending, $2 million could provide about $80,000 per year. That’s more than average. The 4 percent rule is a general guideline that suggests retirees can withdraw 4 percent of their retirement savings each year without depleting their nest egg. This rule assumes that the retiree’s portfolio is invested in a mix of stocks and bonds.
However, the 4 percent rule is not a guarantee. There are many factors that can affect how long your retirement savings will last, such as inflation, investment returns, and unexpected expenses.
Factors to Consider
When deciding if $2 million is enough to retire at 67, there are several factors to consider. These include:
- Your lifestyle: Do you plan to travel or live a more frugal lifestyle?
- Your health: Will you need to pay for healthcare expenses?
- Your retirement goals: Do you plan to leave an inheritance for your children?
- Your other sources of income: Do you have a pension or Social Security benefits?
It’s important to consider all of these factors when planning for retirement. You may want to consult with a financial advisor to help you determine how much money you will need to retire comfortably.
While $2 million may seem like a lot of money, it may or may not be enough to retire at 67. The 4 percent rule is a general guideline, but there are many factors to consider when planning for retirement. It’s important to take a holistic approach to retirement planning and consider all of your sources of income and expenses. With proper planning and guidance, you can retire comfortably and enjoy the fruits of your labor.
A video on this subject that might interest you:
TO READ THIS LATER, SAVE THIS IMAGE ON YOUR PINTEREST: