Originally Posted by Fermion
$1M gives you $40,000 at a 4% SWR, which in all likelihood is good for a 25 to 30 year retirement...at the very least it gets them to age 70 SS, which would drop their SWR down to 2% or so depending on what they have left in the portfolio.
$40k is what a majority of Americans have as take home pay with two kids, so I guess the whole country is in poverty.
I'm guessing that you're thinking about median "household" income. But, lots of households have only one person.
The 2013 median for married couple families with children under 18 was about $85,000. (see the ninth table here: HINC-04 - U.S Census Bureau
I think they pay no more than $12,000 in federal FICA and FIT. Of course, they might also pay state income tax. Their after-tax income seems to be over $70,000.
(The median for all four person families is lower, I assume that number includes a single parent with three children.)