Let’s say when you retire in 2018 you are earning $50,000 and through prudent saving and investing you have accumulated $1,000,000 in retirement savings.
Using the SSA quick calculator we find that a couple will receive $26,100 in benefits at normal retirement age.
Then using a 4% withdrawal rate from retirement assets (you’ll have to take, but not necessarily use, the required minimum distribution (RMD), we add $40,000 for a total income of $66,100 – more than pre-retirement income.
It appears $1 million can be a lot of money and for many people provide a nice retirement. Image if your expenses in retirement actually do decline. 😃