![]() For instance, nearly all retirees are eligible for Social Security. ![]() This model does not include a number of other factors. Only about 3% of 2,000 retirees surveyed by the Employee Benefit Research Institute in 2022 spent $7,000 or more per month, equivalent to $84,000 in annual spending. This would permit a 65-year-old retiree to maintain consistent purchasing power until age 95 and beyond.įor most retirees, this will likely be adequate to maintain a satisfying standard of living. For example, if inflation runs at the 2% rate that is the target of federal policymakers, the retiree will withdraw $100,000 the first year of retirement, $102,000 the second year, $104,040 the third year and so on.Īccording to this model and conventional wisdom, a 4% withdrawal rate will allow a portfolio to last for at least 30 years. This is using the 4% withdrawal rate that many advisors consider safe.Īfter starting with the first withdrawal of 4% of the total, the annual withdrawal will adjust for inflation. ![]() Retirement Income From $2.5 MillionĪ retirement nest egg of $2.5 million can likely produce an annual income of $100,000 for as long as you are likely to live. For answers to your retirement questions, talk to a financial advisor. ![]()
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