You can probably retire in financial comfort at age 45 if you have $3 million in savings. Although it's much younger than most people retire, that much money can likely generate adequate income for as long as you live.
We estimated that most people looking to retire around age 65 should aim for assets totaling between 7½ and 13½ times their preretirement gross income. From there, we identified savings benchmarks at other ages based on a reasonable trajectory of earnings and savings rates.
That's not chump change, but it's also not the $5-$10 million range some financial gurus – like Suze Orman – insist you must live comfortably. If you're dreaming of $3 million or more, though, you're officially aiming for a financial VIP club that represents less than 1% of retirees.
If you're retiring at 55 instead of 66, you have 11 extra years of expenses and 11 fewer years of income that your savings will need to cover. The good news: As long as you plan carefully, $3 million should be a comfortable amount to retire on at 55.
A high-net-worth individual (HNWI) is a person with typically at least $1 million in liquid financial assets. An ultra-high-net-worth individual has a net worth of more than $30 million.
As mentioned above, $3 million can easily carry you through 40 years of retirement, making leaving the workforce at 50 a plausible option. Many dream of early retirement, but if you're lucky enough to already have $3 million set aside for this phase of your life, you could do more than dream.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Interestingly, the 90th percentile is pretty flat, around $2.5M to $3M, from one's early 50s to one's 80s. The 95th is slightly less flat, with a peak slightly under $7M in one's late 60s; while the 99th percentile rises sharply with age until peaking over $22M in one's late 60s, from which point it mostly drops.
Average Monthly Retirement Income
According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
For a $3 million retirement fund, anticipate a monthly income of $6,250 over 40 years, barring investment growth or loss. Factors such as lifestyle choices, inflation, and healthcare costs will influence how long your savings last.
How much does a $3 million annuity pay? As of January 2025, with a $3,000,000 annuity, you'll get an immediate payment of $18,000 per month starting at age 60, $19,825 per month at age 65, or $21,333 per month at age 70.
According to some experts, the optimal range for home-ownership is between 10% and 30% of your net worth. Rental properties and passive income: Rental properties are another common and attractive form of real estate.
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In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
Should Your Net Worth Calculation Include Your Car? When calculating your net worth, subtract your liabilities from your assets. Since your car is considered a depreciating asset, it should be included in the calculation using its current market value.
This may not come as a surprise to most people, but the net worth that the average American considers to be “wealthy” is higher than it used to be. In findings from its 2024 Modern Wealth Survey, Charles Schwab said that Americans, on average, believe it takes $2.5 million to be considered wealthy in today's economy.
How Much More Social Security Do the Richest Retirees Get Compared to the Average American? Rich retirees get more Social Security than those who didn't earn as much throughout their career. And that makes sense since benefits are based on your earnings history.
According to the 2020 U.S. Census data, the median household income for those between ages 55 and 64 is $74,270 per year. That gives us a middle-class income range between approximately $49,500 and $148,500 if we're focusing strictly on this age group.
“For example, if you retire with $3 million saved, you would start withdrawing $120,000 in the first year and adjust this amount for inflation thereafter,” he said. To stretch your money further, Kayikchyan said you can consider withdrawing less than $120,000 annually.
The 4% rule is a popular retirement withdrawal strategy that suggests retirees can safely withdraw the amount equal to 4% of their savings during the year they retire and then adjust for inflation each subsequent year for 30 years.
According to estimates based on the Federal Reserve Survey of Consumer Finances, a mere 3.2% of retirees have over $1 million in their retirement accounts. The number of those with $2 million or more is even smaller, falling somewhere between this 3.2% and the 0.1% who have $5 million or more saved.