Is $2.5 Million Enough To Retire Comfortably At 65?

While it may seem as if it should be no problem to retire at age 65 if you’ve saved $2.5 million, a global pandemic, fluctuating financial markets and historically high inflation have shown that nothing in life may be certain.

Using the common ‘4% rule’ (assuming a 30-year horizon, 60/40 portfolio, 2% inflation, and no advisory fees), $2.5M might support about $100K in first-year withdrawals, adjusted annually for inflation—but results can vary widely.

That’s why we feel it can be important to speak with a financial advisor to help make sure your investments and retirement plan will be able to support your retirement lifestyle.

In fact, SmartAsset’s latest proprietary model reveals that working with a financial advisor could potentially add from 36% to 212% more dollar value to investors’ portfolios over a lifetime, depending on multiple unique, individual factors.¹

With thousands of advisors in the US, it can seem daunting to choose one. SmartAsset's no-cost tool can help you find and compare vetted financial advisors serving your area, each legally bound to work in your best interest.

It's never too late to plan to work toward a comfortable retirement. Explore your advisor matches today.

This is a hypothetical example and is not representative of any specific security. Actual results when working with a financial advisor will vary.

This scenario is for illustrative purposes only and does not represent an actual client. Results may vary.

This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). Past performance is not a guarantee of future results. There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.

SmartAsset.com is not intended to provide legal advice, tax advice, accounting advice or financial advice (Other than referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.

SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments.

We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

Sources:
1. “The Value of a Financial Advisor: What’s It Really Worth?” SmartAsset (Nov. 2024)