The WSJ recently published two excellent graphics which show how long $1 million of retirement savings would last based on a given rate of after-inflation growth. Definitely provides some insight into how much you will need to save and most likely you will need more than you think. Particularly if current low rates of return persist for a long time.
Recent calculations from the Employee Benefit Research Institute show that roughly 44% of those born between 1948 and 1978—baby boomers and Generation X—won’t have adequate retirement income, and that is assuming interest rates go back up in 2014. Even a 1-2 percent increase in the after inflation return can make a huge difference in what you will be able to earn and spend in retirement.
6 thoughts on “See How Long $1 Million Will Last in Retirement”
I am planning on having more than $1 million at retirement. I think people have to save more than they do right now. For people who are in their 20s, $1 million should be the minimum starting point for a safe retirement plan.
I think I’ll have to work till I die or move to another country where it will be cheaper to retire. Spent $200 on groceries, $100 on gas and $120 at a doctors appointment the other day. And felt like I had nothing to show for it.
New Goal: Retire with 2 million dollars and a part-time job, so that you can pay medical, food, education and tax bills.
Ah, I remember when $1M was the ultimate goal. Then the 80’s hit.
Plan for 0% investment growth, high medical bills, inflation and war. Or just work till you drop dead like most Americans will have to!
Hmmm. One million bucks sure aint what it used to be! Neither is one million pounds sterling for that matter ;-)