Not only do Zoomers think they'll retire at 60 on average, according to the survey from Northwestern Mutual, but 2 in 5 of them also expect to live to 100. They also expect to need just $1.2 million to fund that 40-year retirement, the lowest nest egg estimate among the four adult generations in the survey.
A TransAmerica report found that the average zoomer has $33,000 saved for retirement, compared to $50,000 in retirement savings for millennials and $87,000 for Gen Xers. That report, too, found zoomers saving at a higher rate than older workers.
If you have multiple income streams, a detailed spending plan and keep extra expenses to a minimum, you can retire at 55 on $2 million. However, because each retiree's circumstances are unique, it's essential to define your income and expenses, then run the numbers to ensure retiring at 55 is realistic.
Likewise, while you can probably expect investment returns to be much like they have been in the past, there is no guarantee that future performance will match historical returns. Still, a $3 million nest egg will be adequate to fund a comfortable and secure retirement in the majority of circumstances.
Depending on your goals and plans, $3 million can be enough to cover early retirement at 40. However, certain factors will affect whether $3 million is enough. For example, your retirement needs and life expectancy play a big role.
SmartAsset: Is $10 million enough for you to retire at 50? Even when retiring early, $10 million should make your retirement years quite comfortable. By making sure you prepare for factors you can't control—like inflation, medical surprises and taxes—you can clock out for good at 50 without any worries.
The good news is even if you don't invest your money and generate returns, $5 million is still enough that you could live on $100,000 a year for 50 years.
Following the 4 percent rule for retirement spending, $2 million could provide about $80,000 per year. That's more than average. The Bureau of Labor Statistics reports that the average 65-year-old spends roughly $4,345 per month in retirement — or $52,141 per year.
Retiring at 45 with $2 million takes diligent saving and detailed planning, but it is possible. However, you'll have between 20 and 25 years to save, so you must save nearly $3,000 each to hit your goal.
At age 40 you can very comfortably retire with $10 million in the bank, but it doesn't necessarily mean it will always work out for everyone. The exact nature of your retirement will depend entirely on your approach to investing and asset management, as well as your expenses and lifestyle.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
Assuming a 4% withdrawal rate, a 2 million dollar investment portfolio could potentially provide an annual income of $80,000. However, this amount may not be sufficient for some individuals or families to cover their living expenses, especially if they have high living costs or live in an expensive area.
According to Finder's Consumer Confidence Index, Gen Z saves an average of $857 per month, while millennials save $294. Gen Z also has an average of $10,062 in savings compared to $7,165 for millennials.
Gen Z Is Saving Money
Of those surveyed, 69.1% are currently saving some amount of money. And within that group, 56.4% are putting money away for their first home. It makes sense that this demographic has prioritized saving for a house.
They're at once willing to spend on luxury items (but again, how they define luxury differs from previous generations) and fast fashion, all while demanding brands adopt sustainable practices. And Gen Z continues to spend money, even as other generations rein in spending, given higher prices and market volatility.
Is $4 million enough to retire at 50? Yes, you can retire at 50 with four million dollars. At age 50, an annuity will provide a guaranteed level income of $215,000 annually starting immediately for the rest of the insured's lifetime.
The quick answer is yes. With three million dollars, you should be able to retire comfortably if you retire in your 60s. Depending on your cost of living and number of dependents, you can retire with three million dollars at a younger age if you wish and if you are able.
This can potentially be a sizable amount, depending on your healthcare needs. Retiring at age 40 is entirely feasible if you have accumulated $5 million by that age.
Yes, for some people, $2 million should be more than enough to retire. For others, $2 million may not even scratch the surface. The answer depends on your personal situation and there are lot of challenges you'll face. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.
So, how much does one need to retire in comfort? If you're single, you'll need more than $500,000, assuming you own your own home, according to the Association of Superannuation Funds of Australia Retirement Standard. That figure is worryingly higher than the average super balance.
With $5 million you can plan on retiring early almost anywhere. While you should be more careful with your money in extremely high-cost areas, this size nest egg can generate more than $100,000 per year of income. That should be more than enough to live comfortably on starting at age 55.
If you save up $6 million by age 50, you'll position yourself for a long, comfortable retirement.
Types of High-Net-Worth Individuals
An investor with less than $1 million but more than $100,000 is considered to be a sub-HNWI. The upper end of HNWI is around $5 million, at which point the client is referred to as a very-HNWI. More than $30 million in wealth classifies a person as an ultra-HNWI.
If you have $3 million saved, it's likely that you'll be able to retire comfortably. You'll need to factor in your living expenses, inflation and the expected rate of return on your investments.