How Far Does $1 Million Go in Retirement?
$1 million is nice for him, but what about me? That’s probably what you’re thinking, right?
But as Dr. Evil learned after having persevering for 30 years, it may not be enough for many…
It certainly is not enough to retire overly-comfortably nowadays in many cities.
But you can make it work in your favour, depending on where and when…
A new GOBankingRates report measures how long a million dollars would last for retirees and 65-year-olds.
This was done through the Bureau of Labor Statistics, which means the annual expenditure for this age group through a measure of the cost of living for each state, provided by the Missouri Center for Economic Research and Information.
The scores separated the annual expenditure on health, housing, food, transport and public services.
If you want to extend your dollars as long as you can, you have to go generally more affordable locations.
Always set your goals and keep your vision.
Everyone’s dream retirement is different.
For some people, it is about sexy smart homes, yachts, beaches and palm trees.
Whereas, for others, they are looking for a simple snowy mountain resort.
There is no reason to miss out on travelling if that is what you wish to do.
Apart from setting the vision, there are things to consider like how inflation could affect buying power when we are older.
Health care costs for retirees will increase at an average annual rate of 5.5 percent over the next decade, according to Health View Services, which makes it a lucrative area for business.
To put this in perspective, from 2012 to 2016, the average annual inflation rate in the United States was 1.9 percent.
Based on this it makes sense to keep a passive income business running for seniors in retirement.
Or invest in property so that rental earnings can offset the loss of purchasing power due to inflation.
This is something that my Dad taught me.
However, the data is general and different people accumulate a different amount of savings from one state to another.
Nowadays, every entrepreneur has the dream to get to the $1 million pot of savings for retirement or living the dream lifestyle in the 30s!
Many survive on less.
For others, a million won’t be nearly enough to fund the kind of lifestyle they want when they’re older.
It all boils down to your long-term aims.
In closing, despite all of this talk about yachts and inflation… Don’t be paralyzed by big numbers.
Take a leaf out of the wealth handbook and focus on building up the smaller amounts over time.
Seriously, everything counts.
Faithful in your success!