Over the past several months, JD over at GetRichSlowly has been running a poll that asked the following question:
If you were 65 and retiring today, how much do you think you would need?
Interestingly, 42% of respondents said they’d need over $1M, and 27% said they’d need more than $2M. At the other end of the spectrum, 8% thought they could get by on less than $500k.
If you assume a safe withdrawal rate of 4% (as many do), then a $500k nest egg would throw off an inflation-adjusted $20k/year. At $1M, we’re talking $40k/year. At $2M, it’s $80k/year.
What do you think? If you were 65 and retiring, how much would you need?