Is $2 Million Enough to Retire? The Math by Age (2026)

TL;DR

For most people, $2 million is enough to retire comfortably. Using the 4% rule, it provides $80,000/year. Add Social Security, and a couple can have $120k+ annual income. The key factors: your spending, location, retirement age, and healthcare costs before Medicare.

The Short Answer

Yes, $2 million is enough to retire for most people. You would be in the top 3% of American retirees. The average retirement savings for Americans 65+ is around $200,000 - you would have 10x that.

But "enough" depends on your specific situation. Someone spending $150,000/year in San Francisco has different needs than someone spending $50,000/year in Tennessee.

Let us break down the math so you can see exactly where you stand.

The Math: What $2 Million Provides

The standard approach is the 4% rule: withdraw 4% of your portfolio in year one, then adjust for inflation each year. Based on historical market returns, this has a 95%+ success rate over 30 years.

$2 MILLION AT 4% WITHDRAWAL

$80,000 per year

= $6,667 per month before taxes

That is just from your portfolio. Most retirees also have:

Total retirement income example (couple, age 65):

Portfolio (4% of $2M): $80,000
Social Security (average couple): $40,000
Total annual income: $120,000

$120,000/year puts you in a comfortable position for retirement in most of the United States.

Key Factors That Determine If It Is Enough

1. Your annual spending

This is the most important factor. The average retired household spends around $52,000/year. If that is you, $2 million is more than enough. If you spend $100,000+, it gets tighter.

How long $2M lasts by spending level:

$50,000/year (2.5%): 40+ years
$80,000/year (4%): 30+ years
$100,000/year (5%): 20-25 years
$120,000/year (6%): 15-20 years

2. Retirement age

Retiring at 65 vs 55 changes everything. Earlier retirement means:

More years of withdrawals
Fewer years of Social Security credits
Healthcare costs until Medicare (65)

3. Healthcare costs

Before Medicare at 65, health insurance can cost $15,000-25,000/year for a couple. After 65, Medicare plus supplemental coverage is typically $5,000-10,000/year. Our early retirement health insurance guide covers your options in detail.

4. Social Security timing

Claiming at 62 vs 70 can mean a 77% difference in monthly benefits. If you have $2 million, you can afford to delay Social Security and get higher lifetime benefits.

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$2 Million by Retirement Age

Age	Years to Fund	Is $2M Enough?	Key Considerations
65	25-30 years	Yes, comfortably	Medicare eligible, Social Security available
60	30-35 years	Yes, for most	5 years of health insurance costs before Medicare
55	35-40 years	Yes, with planning	10 years without Medicare, reduce withdrawal to 3.5%. See our detailed $2M at 55 analysis.
50	40-45 years	Tight, but possible	Consider Coast FIRE or part-time work
45	45-50 years	Challenging	Very long timeline, consider 3% withdrawal rate

How Location Affects Your Number

Where you live dramatically changes whether $2 million is enough:

$2M retirement viability by location:

Easy:Low-cost states (Tennessee, Texas, Florida), small cities, abroad
Moderate:Average-cost metros, suburbs of major cities
Tight:San Francisco, NYC, Boston, Seattle, LA (may need $3-4M+)

Many retirees relocate to stretch their dollars. A dollar goes 50% further in Tennessee than California. Some pursue "geographic arbitrage" - retiring abroad where $2 million provides a luxurious lifestyle.

Risks to Consider

Sequence of returns risk

A market crash in your first few retirement years hurts more than one later. If you retire into a bear market and withdraw 4%, your portfolio may never recover. Consider a cash buffer or flexible withdrawal strategy.

Inflation

At 3% inflation, prices double every 24 years. Your $80,000/year withdrawal needs to become $160,000 in 24 years to maintain purchasing power. This is why you need growth assets (stocks), not just bonds.

Healthcare surprises

Long-term care is the wildcard. Nursing home care averages $8,000-10,000/month. A few years of care can drain $300,000+. Consider long-term care insurance or self-insuring with a larger portfolio.

Living too long

Longevity risk is real. If you retire at 60 and live to 95, that is 35 years of withdrawals. The 4% rule was designed for 30 years. For longer retirements, consider 3.5% or less.

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Strategies to Make $2 Million Last

Use dynamic withdrawals. Take less in down markets, more in up markets. This dramatically improves success rates.
Delay Social Security to 70 if possible. Each year you delay past 62 increases benefits by about 8%. Your $2M can bridge the gap.
Keep some growth assets. A 60/40 or 70/30 stock/bond allocation historically outperforms all-bonds over long retirements.
Have a cash buffer. Keep 1-2 years of expenses in cash/bonds to avoid selling stocks in down markets.
Consider part-time work. Even $10-20k/year from enjoyable work dramatically reduces portfolio strain in early retirement.
Relocate strategically. Moving to a lower-cost area can cut expenses by 30-50% without sacrificing quality of life.

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Frequently Asked Questions

Is $2 million enough to retire at 60?

For most people, yes. Using the 4% rule, $2 million provides $80,000 per year. Combined with Social Security, this supports a comfortable retirement for couples spending under $100k annually.

How long will $2 million last in retirement?

At a 4% withdrawal rate ($80k/year), $2 million should last 30+ years based on historical market performance. More conservative 3.5% withdrawals ($70k/year) provide an even larger safety margin.

Can a couple retire on $2 million?

Yes. $2 million generates $80,000/year at 4% withdrawal. Add Social Security (average $40k for a couple), and you have $120k annual income - enough for a comfortable retirement in most areas.

Is $2 million enough to retire at 55?

It depends on spending and healthcare costs. Retiring at 55 means 10 more years without Medicare. Budget $15-25k/year for health insurance until 65. With modest spending ($60-70k/year), $2 million can work.

What is the 4% rule for $2 million?

The 4% rule says you can withdraw 4% of your portfolio in year one ($80,000 from $2M), then adjust for inflation annually. Historically, this approach has a 95%+ success rate over 30 years.