Yes, retiring at 60 with $10 million generally puts you in an excellent position for a comfortable retirement, allowing for substantial annual spending (potentially $200,000-$300,000+) for decades, depending on investment returns, inflation, and lifestyle. Key factors are managing taxes, lifestyle costs (like travel, helping family), investment strategy (keeping money working, tax efficiency), and potential Age Pension or new super taxes (like Australia's proposed Division 296). A well-planned strategy ensures your money lasts, even with a 30+ year retirement.
Retiring at 60 with $10 million puts you in an enviable financial position, but even substantial wealth requires careful planning to last through a potentially 30-year retirement. The right strategy depends on how you invest, spend and protect your assets over time.
For people aged 60, Fidelity's retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning £60,000 would need £360,000 in savings - which can mean money both inside and outside of pensions.
As a single person, a balance of around $360,000 would be enough for an income of about $52,000 per year (using a combination of super drawdown and Age Pension payments), which is close to what ASFA estimates is needed for comfortable retirement.
Generally, a liquid net worth of at least $1 million would make you a high net worth (HNW) individual. To reach a very high net worth status, you'd need a net worth of $5 million to $10 million. Individuals with a net worth of $30 million or more might qualify as ultra-high net worth.
With over 905,000 individuals holding a net worth of $10 million or more, the United States continues to top the list as the world's primary wealth creator.
It's entirely possible to live off the interest earned by a $10 million portfolio, depending on your investment choices and how much you need. You should ensure that your lifestyle goals are in line with the income produced if you plan to make it through retirement without running out of money.
A comfortable retirement will look different for everyone. While 7 figures in superannuation may sound great, the reality is most people heading into retirement won't have anywhere near that amount. Australians aged between 60-64 have an average super balance of $401,600 for men and $300,300 for women1.
The top ten financial mistakes most people make after retirement are:
There's no single correct amount to save for retirement. For example, a $500,000 nest egg may be a good amount for some retirees, while others may need more, depending on where they live and how many dependents they have. If you want to figure out what size your nest egg should be, a retirement calculator can help.
Americans in their 60s have the most saved for retirement with average balances close to $1.2 million. Average account balances more than double between those in their 20s vs their 30s. Those in their 80s still have an average balance of $801,103 for retirement.
If you're ready and financially secure, retiring at 60 could be ideal. However, if you're concerned about savings or healthcare costs, consider working a few more years to strengthen your financial foundation.
If you retire at 60 with £600k in the UK, you will take between £18-24K from your pension every year – certainly a more attractive income, but still far away from a luxurious retirement.
Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."
Yes, retiring at 60 with $5 million in savings is very feasible for a comfortable lifestyle in most areas based on median American living costs. A $5 million portfolio could support typical household spending indefinitely assuming historically average returns.
Retirement Regrets: Top 15 Things Retirees Wish They Had Done Differently
The "3 rule retirement" typically refers to a conservative withdrawal strategy, like the 3% rule, suggesting you withdraw 3% of your savings in the first year and adjust for inflation, ensuring your money lasts longer, especially if retiring early or leaving an inheritance. Another concept is the Rule of Thirds, splitting savings into a guaranteed annuity (1/3), growth investments (1/3), and cash/emergencies (1/3), or the Three Buckets for managing cash flow (short, medium, long-term).
Maximize Retirement Account Contributions
Orman said, “I recommend the Roth option. If your plan doesn't have a Roth option, your strategy should be to contribute just enough to the traditional 401(k) to qualify for the maximum matching contribution. Then do more retirement saving in a Roth IRA.”
While exact real-time figures vary, recent analyses suggest hundreds of thousands of Australians hold over $1 million in superannuation, though it's a minority, with estimates from around 2021 pointing to over 400,000 people, a number that has grown significantly due to investment returns, though many still don't reach this milestone. About 2.5% of the population held >$1 million in super as of mid-2021 (around 417,000 people), with forecasts indicating a larger number, while projections suggest over 10% of women and 15% of men retiring by 2060 could reach this goal, and recent studies highlight that a large majority (around 94%) of retirees don't hit $1 million.
A wealthy retiree in Australia is generally someone with substantial assets, often defined as having over $1 million in investable assets (excluding the family home) or a total net worth exceeding that, allowing for a very comfortable lifestyle well above basic needs, potentially generating $150,000+ annual income, though "wealthy" is relative, with many considering >$1M or a significant super balance as rich.
Take a look to see if any sound familiar.
THE NOMINAL DEFINITION OF WEALTHY
About 95 percent of millionaires in America have a net worth of between $1 million and $10 million. Much of the discussion in this book centers on this segment of the population.
But more than likely, with that amount saved, you're able to live it up--and living it up is something you can decide to do or not to do. Things like luxury travel, dining out, and expensive car purchases can all be dialed up or dialed back depending on how the cash flows in retirement are holding up.
Yes, it's possible to retire on $1 million today. In fact, with careful planning and a solid investment strategy, you could possibly live off the returns from a $1 million nest egg.