Can I Retire on $10 Million?

A $10 million nest fund will provide a comfortable retirement for the vast majority of retirees. However, whether that amount is sufficient to fund any particular retiree’s golden years is dependent on a variety of circumstances. This covers a retiree’s pre-retirement lifestyle and spending patterns, the number of years he or she will live after retirement, and the returns on an investment portfolio.

A financial advisor could assist you in developing a financial strategy to secure your retirement funds and achieve your financial goals.

Key Considerations When Retiring With $10 Million

Funding a comfortable retirement is a complex enterprise with many moving elements. It can also be tough to estimate accurately depending on your circumstances. However, you can get an idea of whether $10 million is enough for retirement by analyzing the following four major factors:

Length of retirement. Perhaps the most vital piece of information when evaluating the sufficiency of a retirement nest egg is how long the money will have to last. This depends on two elements: When you retire and how long you’ll live. As with other key pieces of this puzzle, there are no firm figures. The average age of retirement is 64, but your date of retirement is up to you. According to the Social Security Administration, the average 65-year-old can expect to live another 16.9 years if male and about 19.5 years if female. However, these are only averages and your life may be longer or shorter.

  • Expenses in retirement. How fast you spend your money clearly affects your retirement. Making a budget will help you answer this question. A Bureau of Labor Statistics study from 2020 found that the average annual expenditures of a household headed by a person aged 65 or older was $24,721 per year. Again, this is an average. Many factors influence retirement spending, with the most notable being your personal wealth and health.
  • Amount of income. Another vital matter is the rate of return on your investments. Based on recent returns, a $10 million portfolio could generate from a fraction of 1% to as much as 10%, equal to a few thousand dollars to $1 million per year, depending on your selection of investments. Of course, past returns are not necessarily indicative of future returns. However, a 5% return on a $10 million fixed-rate annuity, which is currently achievable with annuities, would produce a reliable $500,000 per year. Retire

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