Poll:Is $1 Million still a relevant number nowadays for 2 retirees?

[RunningBum]

I still say it is and I'm purposely going to omit pensions in my examples. If you have one, great.

...

Now your at $82,000 per year. If you can't live on that, I'd say your in baller territory and need to find another forum or adjust.

...

Remember, California and NY isn't all off America. It's just some of the most expensive to live. Everything else is just excuses and bragging.

Who appointed you to be the arbiter of how much wealth you are allowed to have in this forum?

 

[Time2]

Here's data from a CNBC story from a year ago. Only about 30% of those older than 60 have over $500k, saved, and 12% have $1M saved. Almost 40% have less than $100k. Obviously there are a lot of people that retire with much less than $1M. $1M plus two SS checks will get you pretty close if not slightly above the US Median income, putting you in a pretty small group of retires. Is it enough? As we have seen spending varies GREATLY. So, that depends on your story.




Age 60-69

28% have less than $50,000 saved
10% have $50,000 to $99,000 saved
36% have $100,000 to $500,000 saved
14% have $500,000 to $999,000 saved
12% have $1 million or more saved

Age 70-79

20% have less than $50,000 saved
13% have $50,000 to $99,000 saved
36% have $100,000 to $500,000 saved
19% have $500,000 to $999,000 saved
12% have $1 million or more saved


https://www.cnbc.com/2020/01/23/her...e-saved-for-retirement-at-different-ages.html

 

[Aerides]

Now say the spouse also gets SS at $1,500 per month and you use a 4% withdrawal rate on the million. Now your at $82,000 per year. If you can't live on that, I'd say your in baller territory and need to find another forum or adjust.

You would be surprised. We have many people on this forum with different locations and lifestyles. Many live quite well on less than half that, many would not choose that budget for their retirement (in any state or country). Particularly those who retire early to travel extensively, to give generously to church and/or charity, or maintain two homes.

There is no upper or lower budget cap on forum membership.

 

[GenXguy]

Obviously there are a lot of people that retire with much less than $1M.

Looks like an overwhelming majority, in fact. Some people retire on SS alone. The average SS check is $1,543/mo. That's $18,516/yr.

 

[watchman3135]

You would be surprised. We have many people on this forum with different locations and lifestyles. Many live quite well on less than half that, many would not choose that budget for their retirement (in any state or country). Particularly those who retire early to travel extensively, to give generously to church and/or charity, or maintain two homes.

There is no upper or lower budget cap on forum membership.

Agreed and it's an impossible "answer all" question. I'm a bit over $2M now and ER'd at 53 a year and a half ago and live in Illinois. Admittedly THE WORST property tax state next to NJ and a few others but everything else is relatively reasonable and shockingly to most who are aware of Illinois's issues, no state taxes on retirement income but we still intend to move West but not CA.

The thing that gets me is the "$1M is nothing today" cliché in the retirement community today is it's like everyone acts as California or New York or other expensive places are the only place to live and moving is not an option. If that's the case, then you're going to need to stay in that crappy old job and grind away another 10-20 years of your useful life to maintain your lifestyle in that expensive state you are unwilling to leave for whatever reason.

Like my father said to me many times over the years, If you don't think $500k or $1M is a lot of money, try and save it from zero.

 

[watchman3135]

Who appointed you to be the arbiter of how much wealth you are allowed to have in this forum?

Not I. 2019 US Median household income was $68,703 in 2019. https://www.census.gov/library/publ...an household income was $68,703,and Table A-1)

 

[Badger]

There are so many variables in the equation that you might as well ask, "How high is up?"

For our retirement plan there was so much more than savings that needed to be considered. I figured there were at least 5 other factors that were equally as important. Once they were addressed we were ready for most anything except for the total collapse of the country.


Cheers!

 

[teetee]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

 

[brett]

Depends entirely on what other income you have, your lifesyle, COL, and your aspirations for retirement.

 

[RunningBum]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

Good thing I retired at 49 then. Bare minimum? Really?

 

[LarryMelman]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

You need to qualify this. With or without a pension? With or without retiree health insurance (free or reduced-cost or full-price)?

I think many folks on this site were government or military employees or at the very tail end of the private-sector era that provided pensions and benefits to early retirees. Those folks can retire very comfortably on very little savings. On the other hand, I don't have any such gravy trains and even with more than 4MM in the tank, I keep working for now because I just can't trust that good health insurance will be available for the next 10 years that I need it before Medicare age.

 

[Dtail]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

IIRC, the average stash for retirees on this site is less than 4MM and that includes many couples.

 

[Koolau]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

What I've noticed on the forum AND in real life - it depends upon why you are FIREing. If you are "ready for a change", "no longer challenged", "get a really good package" "you're just 'tired' of your j*b" - you might be right. I'd quibble with your numbers, but the concept is that while you are still empl*yed at a j*b you can deal with, you have the "luxury" of saying "I need THIS much as a bare minimum."

But when you have to talk yourself into even getting out of bed to go w*rk at what you consider drudgery and report to a (fill in the nasty remark) boss, huddle in a cube for 10 hours or more (for 8 hours pay because you're a "professional" whatever), despise your Megacorp's politics (not national stuff - just the inter-office, inter divisional crap), have become too "inbred" in your field to expect to be h*red into a similar company (so that your choice of a new c*reer might be "landscaping" - as in mowing lawns or greeter at walmart) you might just be willing to drop those standards to a million bucks to FIRE.

I've mentioned my friend who is half a million in debt in his mid 70s. When he ER'd at IIRC 51, he had $20K in his 401(k) plus uncola'd, reduced pension but with subsidized medical. That was it - now SS and MC. It was "enough" for him. He knew he could play the CC game - and he has, quite well. I couldn't live that way, but he seems to thrive. His many cars are better than mine - all leased, his house is nicer than mine - mortgaged to the last dollar of equity and he lives in the hot and cold midwest He does what he wants, has his toys, does his hobbies and "w*rks" the CC companies who are always upping his limits and sending more cards! Who is to say his way isn't better than mine or especially the 4MM starting point. So YMMV.

 

[Tiger8693]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

So I guess 90%+ of people will not be able to retire....

 

[RetiredAt55.5]

IIRC, the average stash for retirees on this site is less than 4MM and that includes many couples.

+1

I will say that net worth is a meaningless yardstick (to me), since one could have a lot or a little tied up in a house and expensive cars, etc.

 

[mistermike40]

I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US, with some spare room for handling surprises (realestate and/or medical).
I understand the cost of living is different in different parts of the country. But one's true spending is different from col.

Just curious... how did you come up with this (very large) "bare minimum" number?

Assuming no pension or SS and 4% SWR, it still comes out to $160K/year. That's the bare minimum for a single person? A fairly small percentage of people earn this kind of salary while working... I think the vast majority of people manage to get by on considerably less

 

[Koolau]

+1

I will say that net worth is a meaningless yardstick (to me), since one could have a lot or a little tied up in a house and expensive cars, etc.

Perhaps not universally accepted practice here, but most only consider "invested assets" when we speak of net worth. I add in the house only when considering my back ups (how many years in a nursing home would my house provide, for instance.) Some of us DO include principle residence in NW but, you are right, that complicates things since it's not practical to take 4% of your house as part of your FIRE income. Heh, heh, I hadn't thought about cars as my 3 cars might net me $8 grand if I found the right buyer. YMMV of course.

 

[CindyBlue]

Wow, I retired with a lot less than 4MM...in fact, at the time, less than 1MM (and not much over that now.) So far we are doing fine, but...maybe I should have kept working...

 

[Major Tom]

Wow, I retired with a lot less than 4MM...in fact, at the time, less than 1MM (and not much over that now.) So far we are doing fine, but...maybe I should have kept working...

I was about to comment along the same lines. To make such a specific statement, in dollar terms, is clearly mildly absurd.

However, he did say,

"I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US."

Obviously, many others here don't think the same, or we'd all still be working!

 

[FLSUnFIRE]

So I guess 90%+ of people will not be able to retire....

93-95% if you believe this calculator: https://dqydj.com/net-worth-by-age-calculator-united-states/

 

[Gumby]

I was about to comment along the same lines. To make such a specific statement, in dollar terms, is clearly mildly absurd.

However, he did say,

"I think 4MM net worth is the bare minimum for a single person in their 50s to retire in the US."

Obviously, many others here don't think the same, or we'd all still be working!

Since I'm out to prove that I'm an even bigger BSD, I say $6 million, and that's only if you want to live like the plebs, which I surely don't intend to do.

 

[Tiger8693]

Since I'm out to prove that I'm an even bigger BSD

Sorry, whats BSD?

 

[Gumby]

Sorry, whats BSD?

"Big swinging ..."

 

[Car-Guy]

"Big swinging ..."

You "must" mean, Big Swinging Dude.

 

[Gumby]

You "must" mean, Big Swinging Dude.

Yeah, that's it.