Last week, I was reviewing a client who was overly worried that she would essentially be living on the poverty line in retirement. Thankfully, this was not the case as she had accumulated enough assets to comfortably meet her income needs when she retires. This is not an uncommon concern as many people have little idea about how much money they will need in retirement, and some have greatly overestimated the amount they will require.
A potential reason for this is that, for years I’ve heard that you need 1 million dollars to retire (this excludes your residential property). I’m not sure where this started, but it seems to have become a golden benchmark that many see as a necessity. Over the years, I’ve dealt with countless retirees and I’m able to confirm that very few reach the magic $1 million mark.