$2 million at age 70 can last well over 30 years, often 35-40+ years, depending heavily on your spending, location (cost of living), investment returns, healthcare costs, and if you're withdrawing using rules like the 4% rule (yielding ~$80k/year) or supplementing with Social Security. For example, in lower-cost states, it could stretch to 40+ years, while high-cost areas like California might see it last closer to 35 years or less without careful management, says a CNBC analysis.
A retirement account with $2 million should be enough to make most people comfortable. With an average income, you can expect it to last 35 years or more. However, everyone's retirement expectations and needs are different.
Very few people retire with $2.5 million; it's a rare achievement, with less than 2% of U.S. households having $2 million and even fewer reaching $2.5 million or more, placing it in the top echelon of savers, far above the average retirement savings of around $230,000 to $600,000 for older adults.
Achieving a $2 million nest egg for retirement is relatively uncommon among Americans. According to the Employee Benefit Research Institute, less than 2% of households have $2 million or more saved for retirement.
That said, many experts recommend withdrawing 3% for early retirees. You say you've read it's possible to pursue an early retirement after attaining $2 million, and that may very well be the case for some people. But it isn't the ideal figure for you if it means you and your wife aren't happy anymore.
Yes, $2 million is generally considered wealthy in the U.S., especially by the average person, with surveys showing the benchmark for "wealthy" is around $2.3 million, though it varies by age, location, and lifestyle, while the financial industry often defines high-net-worth at $1 million in liquid assets. Having $2 million in net worth places you above most Americans, but its impact depends on expenses like housing and debt.
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).
Yes, $2 million should be enough to allow you to enjoy a comfortable, happy retirement that suits your needs and preferences. You retire at 61 – With an estimated life expectancy of 90, you need 29 years of income. Across those years, $2 million could equate to approximately $68,966 annually or $5,747 monthly.
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.
Retirement savings in your 70s
Americans in their 70s have an average retirement savings balance of $1,020,318; the median is $436,144, putting some 70-year-olds in the retirement millionaire bracket.
Only a small fraction of Americans, around 1.8% of U.S. households, have $2 million or more saved in retirement accounts, according to analyses of Federal Reserve data by organizations like the Employee Benefit Research Institute (EBRI). This puts them in a very elite group, as most people fall far short of this milestone, with far fewer reaching $3 million (around 0.8%).
The top ten financial mistakes most people make after retirement are:
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
Back in late 2024, Charles Schwab released their Modern Wealth Survey, which found that Americans think you need a whopping $2.5 million in net worth to be considered wealthy or upper class.
Average net worth at age 72
According to Federal Reserve data, households led by someone between the ages of 70 and 74 have an average net worth of about $1.7 million to $1.8 million. This is the mean figure, and it's heavily skewed by very wealthy households.
Health care costs.
This sets your retirement income foundation. If you have modest expenses and additional sources of income, then $2 million may be enough to retire. However, if your expenses are high, and you don't anticipate they'll go down, then you may want to plan to save more.
The magic number: Living off interest
For example, if you need to replace $100,000 per year in income and you expect to earn 2.5 percent on your investments, you'll need $4 million saved ($100,000 / . 025 = $4 million).