![]() ![]() How long your retirement account will last depends on how much you take out of it and that depends significantly on how and where you live.įor example, take someone who needs nothing more than our median retirement income of $56,800. As you near and enter retirement most people shift this balance away from a higher risk/higher reward assets and into safer investments. In your working life, your retirement account will often hold a significant measure of equity funds and even, perhaps, some individual stocks. Investors manage their retirement accounts differently over time. You also get to plan for at least some rate of return. With a $2 million retirement account, you can coast on this for about 35 years ($2 million / $56,800).īut it's not that simple (in a good way). This means that you should plan for your retirement account to replace about 80% of your pre-retirement income.īy those numbers, the median household should plan for around $56,800 per year in replacement income ($71,000 x 0.8). Most retirement advisors, meanwhile, recommend the 80% rule. In other words, how much money do you have in your account? How much do you take out of the account each year? And how many years can you make those withdrawals before you run out of money? For a $2 million retirement account, we can start with the averages.Īt the time of writing, the median income in the United States was just below $71,000 according to the U.S. To find out how long it will last with your specific situation, consider working with a financial advisor.Īt its most basic, your retirement math is Account – (Drawdown x Year of Retirement). The longer answer is, even with no growth of any kind this nest egg will last an average household around 35 years. How much money you need depends on health, lifestyle, location, longevity and so many more issues both within and well outside of your control. How long will $2 million last? The short answer is, most likely it will last you comfortably for the rest of your life. On the other hand, it's a tough question. ![]() If you don't, you may have to keep working so the lights stay on and the fridge stays full. If you have enough money, you can retire comfortably and never look back. How long will 2 million last in retirement
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