Retire on $1M?
Do you think it’s possible to retire on $1M? It’s never too early to relook at your retirement offerings and the potential for guaranteed lifetime income options.
There are some reports and surveys out recently that talked about how long $1 million would last in retirement. The bottom line is that you can retire on $1 million but it depends on where you live and how carefully you plan.
GoBankingRates analyzed how far $1 million would last, ranking by state with Hawaii and New York lasting the shortest amount of time (less than 15 years), to Mississippi and Oklahoma where $1 million in savings could last over 22 years. They calculated the estimated annual cost of groceries, housing, utilities, transportation, and healthcare. Living in the midwestern and southern states appears to be less costly overall, making your retirement savings stretch farther into your older years.
A recent Schwab survey indicated that there has been increased confidence about achieving retirement goals, but in that 401(k) survey, participants said they believe they need $1.9 million to retire comfortably. Those surveyed also said they were looking to a financial professional to help with their retirement investment decisions. 401(k) plans and health insurance ranked as the top must-have benefits going forward.
Figuring out how much it will cost you to retire comfortably is a challenge. There’s inflation and other unknowns such as healthcare expenses and whether you’ll need assisted living that could come into play and unbalance your estimations. In 2023, the average monthly retirement income in the U.S. is $4,380 according to the US Census Bureau.
Your retirement income will likely include:
- Social security
- 401(k), IRAs, and other savings plans
- Pension plans
- Part-time work, rental income, and annuities
At this point you are probably thinking that a guaranteed lifetime retirement income benefit would be a great supplement, an income you could depend on for financial stability and peace of mind. Did you know such guaranteed lifetime retirement income plans are available?
You can retire on a million dollars, but it’s up to you to plan ahead, budget, and understand where it’s best to invest your money. The most effective guaranteed income streams are launched well before retirement age.