Can I Retire With $2 Million?

Beyond the Numbers: What Else Matters?

Retirement planning goes deeper than spreadsheets and withdrawal rates. The math tells you if $2 million can last, but your life circumstances determine whether it actually will.

Healthcare Costs Can Change Everything

Medicare kicks in at 65, but it covers far less than most people expect. You'll still pay premiums for Part B and Part D, plus out-of-pocket costs that add up quickly. Many retirees add a Medicare supplement plan (Medigap) or choose Medicare Advantage to fill the gaps.

Long-term care presents an even bigger question mark. A private nursing home room averages over $100,000 per year in many states. Home health aides, assisted living, and memory care facilities all carry substantial costs that Medicare typically doesn't cover. Some people buy long-term care insurance. Others self-fund. Either way, planning for healthcare expenses beyond basic Medicare matters enormously.

Learn more about Medicare coverage options and costs in the 2025 Medicare & You handbook
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Social Security Timing Creates Lasting Impact

You can claim Social Security as early as 62 or delay until 70. That five-year window creates a permanent difference in your monthly benefit. Claim at 62 and you'll receive roughly 70% of your full benefit for life. Wait until 70 and you'll get 124% of your full benefit, plus annual cost-of-living adjustments on that higher base.

For married couples, the claiming strategy gets more complex. Spousal benefits, survivor benefits, and the timing of each person's claim all interact. The higher earner delaying benefits often provides better long-term security for the surviving spouse.
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Pension Income Simplifies the Math

If you have a pension, you're ahead of most retirees. Guaranteed monthly income reduces pressure on your $2 million nest egg. A pension covering even $30,000 per year means you need less from your portfolio, which extends how long it lasts.

Consider whether your pension includes cost-of-living adjustments. Fixed pensions lose purchasing power over time, while inflation-adjusted pensions maintain their value.
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Part-Time Work Adds Flexibility

Retirement doesn't have to mean stopping work completely. Many people transition gradually through consulting, part-time roles, or passion projects that generate income. Even modest earnings reduce portfolio withdrawals and give your savings more time to grow.

Phased retirement also keeps you engaged and can make the psychological transition smoother. You maintain professional connections, mental stimulation, and a sense of purpose while easing into full retirement.
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Legacy and Estate Planning Shape Your Strategy

Do you want to leave money to children, grandchildren, or charities? Your legacy goals change how you manage your $2 million. Someone planning to spend their last dollar will approach retirement differently than someone wanting to pass on substantial wealth.

Estate planning tools like trusts, beneficiary designations, and strategic gifting can protect assets and minimize taxes. These decisions affect both how long your money lasts and what happens to it after you're gone.

Learn more the estate planning basics here (IRS.gov)
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Lifestyle Choices Define Your Experience

Your retirement vision matters as much as your balance sheet. Do you plan to travel extensively in your 60s and 70s, then settle into a quieter lifestyle? Will you support adult children or grandchildren financially? Do expensive hobbies like golf or boating factor into your happiness?

Family dynamics also play a role. Caring for aging parents, helping children through tough times, or supporting grandkids' education all create financial ripples. These aren't just expenses to budget for. They're values to honor in your planning.

The best retirement plans account for both the numbers and the life you want to live. When those two align, $2 million can be more than enough.

What If $2 Million Isn't Enough?

If your calculator results look tight, you have more options than you might think. Retirement timelines aren't set in stone, and small adjustments often create significant improvements.

Delay Retirement by Just a Few Years

Working two to five more years can transform your retirement outlook. You contribute more to savings, give your portfolio additional time to grow, and shorten the retirement period your nest egg needs to cover. You also delay Social Security, which permanently increases your monthly benefit.

A 60-year-old planning to retire immediately might reconsider working until 63 or 65. Those extra earning years may matter more than aggressive cost-cutting later.
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Explore Part-Time or Consulting Work

Retirement doesn't require going from full-time work to zero income overnight. Many professionals transition into consulting, contract work, or part-time roles in their field. Others pursue entirely new interests that happen to generate income.

Even earning $20,000 to $30,000 annually for the first five or ten years of retirement reduces portfolio withdrawals substantially. That cushion extends how long your savings last and provides flexibility if markets underperform early in retirement.
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Consider Downsizing or Relocating

Your home represents both a major expense and a potential source of funds. Downsizing to a smaller house or moving to a lower cost-of-living area can free up equity and reduce ongoing costs like property taxes, utilities, insurance, and maintenance.

Relocating from a high-cost state to a more affordable one might save $20,000 to $40,000 per year on housing and everyday expenses alone. Some retirees move from the coasts to the South or Midwest. Others relocate within their current state to less expensive communities.

Research the cost of living differences here (U.S. Bureau of Economic Analysis)
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Adjust Your Lifestyle and Spending

Sometimes the gap comes down to lifestyle expectations. A $120,000 annual spending habit can often be satisfied with $90,000 through thoughtful adjustments. That might mean dining out less frequently, choosing domestic travel over international trips, or cutting subscriptions and memberships you rarely use.

The key is making intentional choices rather than feeling deprived. Prioritize what brings you the most joy and cut what doesn't.
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Optimize Social Security and Withdrawal Strategies

How you claim Social Security and which accounts you tap first can significantly impact how long $2 million lasts. Withdrawing from taxable accounts before tax-deferred IRAs, coordinating Roth conversions, and managing Medicare premium surcharges all require strategy.

Tax-efficient withdrawal sequencing alone can save tens of thousands of dollars over a 30-year retirement. The order matters as much as the amount.
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Work With a Financial Advisor to Stress-Test Your Plan

Retirement involves too many moving parts to rely on simple rules of thumb. A financial advisor can model different scenarios, stress-test your plan against market downturns, and identify risks you might not see on your own.

Monte Carlo simulations run thousands of possible market outcomes to show your probability of success. Tax planning, estate strategy, healthcare costs, and insurance needs all get easier with professional guidance.

Find financial advisors who specialize in retirement planning →

Whether $2 million is enough depends on choices you make today. The sooner you address potential shortfalls, the more options you have to close the gap.

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The Bottom Line: $2 Million Can Be Enough - But It Depends

Whether $2 million will carry you through a comfortable retirement depends entirely on your unique circumstances. For some, it's more than enough. For others, it requires careful planning, strategic adjustments, and professional guidance to make it work.

The calculator above gives you a starting point, but retirement planning involves complexities that simple projections can't capture - tax strategies, healthcare planning, market volatility, estate considerations, and more.

If you want personalized analysis based on your complete financial picture, finding a financial advisor who specializes in retirement planning can help you make informed decisions with confidence.