re: Is $1 million a lot of money in 2019?

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Anyway, I digress. If you had $1 million and you were, say, 60. Assuming reasonable health and a life expectancy of 85 at that point, could you retire? You could take, what $40k or maybe $50k (after a particularly good year) and expect that money to take you all the way to 85.

Now, if your house is paid for, with SS kicking in at some future date, maybe, but I certainly would feel comfortable at that point.

Isn't $2 million the new $1 million?

What am I missing?

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Is 60 retiring in 2020 or 10-20 years out? Big difference. Have you priced decent health insurance for a current 60 year old? It ain't cheap, especially if you have a spouse. My take on this is $1M today in isolation is not a lot of money, especially at current market levels. $1M in February 2009, that would have been some good $ due to potential market upside and other depressed asset pricing. For a couple without employer private insurance in retirement to bridge the gap to medicare I believe $3M+ in currently invested assets is a reasonable number, + a home with nominal current cost of ownership. I am not talking about a couple with combined sub-$100k pre-tax income. So, 2-couple household, I would want $130k minimum annual income from multiple sources at relatively low draw rates when pulling the plug, plus SSI and pension down the foreseeable line.

As an individual if you will have 2 pensions that are "guaranteed" at 60 (when can these pensions be drawn and are they inflation adjusted?) + SSI (let's just say pensions are taken at 60 and SSI later and pensions provide $35-40k current income and you have $1M in investments, that is a different story for a single person, although the tax impact of pensions, SSI, and tax deferred withdrawals could be expensive from a tax stand point. I have a sibling who started receiving $58k in pension with inflation adjustment at 59 last year + heavily subsidized employer health insurance with little in retirement assets, like $60k, although she does own a home. I would pay $1.3M for the deal she has, yet still be very uncomfortable with only $60k in monetary assets. People might think my numbers are high, but if one is planning an active retirement, trips, etc (excluding expensive boats and vehicles baws love to acquire) I don't think it is off for a low to moderate cost of living location. Health insurance and access to quality health care providers would likely be high on the priority list for me.

My wife and I are only 1 year apart in age, I "retired" at 47 and that's been 8 years. I believe my wife will retire in mid-2020 although she may still work 1-2 days a week, or maybe a consecutive quarter once a year, etc as she doesn't want to completely leave her occupation or lose her license. Our net worth has continued to climb significantly, so I quit being concerned about what is enough or if I need to go back to work, although I do wonder what would happen to my wife if I died suddenly as she is no investor. YMMV.