Is $2 Million Enough to Retire at 70?

Reaching age 70 with $2 million saved is a major financial milestone, but is it enough to retire with confidence? At this stage, you may have maximized your Social Security benefit and built a sizable nest egg, yet questions about lifestyle, healthcare and longevity still matter. Retirement at 70 can offer a shorter time horizon than earlier exits, but rising costs and investment risks don’t disappear.

As you chart a course to a retirement nest egg of $2 million, or any amount, for that matter, you could consider working with a financial advisor for more personalized planning advice.

The 4% Rule

The 4% rule offers a simple way to estimate how much you can safely withdraw from your $2-million nest egg each year without running out of money. According to this guideline, you can withdraw 4% of your portfolio in the first year of retirement, typically from a balanced mix of 50% stocks and 50% bonds. You would then adjust that amount annually to account for inflation.

While it’s a general rule of thumb and not a personalized strategy, it provides a helpful starting point. Applied to a $2-million portfolio at age 70, the 4% rule suggests you could withdraw $80,000 in your first year of retirement.

That said, the rule has its limitations. It doesn’t account for changing market conditions, shifting expenses or variations in investment returns. It also assumes a specific asset allocation and is based on historical averages that may not hold in the future. Still, it serves as a useful benchmark to gauge how much income your savings might reasonably generate each year in retirement. A financial advisor can help you determine the right withdrawal strategy for your retirement.

Social Security and Medicare

A couple deciding that $2 million is enough to retire at 70.

If you retire at 70, you’ll likely have two key benefits working in your favor: Social Security and Medicare. Both can significantly ease the financial burden of retirement.

Social Security provides a steady source of income. Plus, the longer you wait to claim, up to age 70, the higher your monthly benefit. Delaying benefits until 70 increases your payments to 132% of what you’d receive at full retirement age, offering a meaningful boost to your income.

You can estimate your future Social Security payments using our Social Security calculator, which can help you plan more precisely for your income needs.

You’ll also be eligible for Medicare, which begins at age 65 and can substantially reduce your healthcare costs. However, Medicare doesn’t cover everything. You’ll still be responsible for some out-of-pocket expenses, including certain procedures, medications and long-term care.

According to recent data from Fidelity, a 65-year-old couple retiring can expect to spend an average of $330,000 on healthcare throughout retirement. While retiring at 70 may reduce that total slightly, it remains a significant expense that should be factored into your financial plan.

Lifestyle and Cost of Living in Retirement

Whether $2 million is enough to retire at 70 depends largely on how you plan to live. Some retirees prioritize travel, dining out and supporting family members, while others prefer a simpler, lower-cost lifestyle. Clarifying your expected spending patterns is the first step in determining whether your savings align with your goals.

Your cost of living can vary dramatically based on where you choose to retire. Downsizing, relocating to a lower-cost state or paying off a mortgage before retirement can significantly reduce fixed expenses. On the other hand, remaining in a high-cost urban area may require a larger annual withdrawal from your portfolio.

At 70, you’re likely already enrolled in Medicare, but healthcare expenses can still represent a major budget item. Premiums, supplemental insurance and out-of-pocket costs can add up over time. Planning for longevity, potentially 20 or more years in retirement, means ensuring your $2 million can support rising medical expenses as well as everyday living costs.

Even in a shorter retirement horizon compared to retiring at 60, inflation remains a factor. Prices for goods and services typically rise each year, which can erode purchasing power. Maintaining a diversified portfolio that balances income and growth can help protect your spending power over time.

How Inflation Might Impact Your Retirement

Inflation surged in the aftermath of the COVID-19 pandemic, leading many to rethink how to account for rising costs in their retirement plans. Inflation is one of the most significant challenges retirees face, as it steadily erodes the purchasing power of your savings. For example, according to the U.S. Bureau of Labor Statistics, $1 million in January 2000 would’ve required about $1.7 million in 2023 to maintain the same buying power.

While Social Security benefits do adjust for inflation through annual cost-of-living increases, other areas of your retirement budget may feel the strain, especially when you’re living on a fixed income.

One of the best ways to protect your retirement income from inflation is through diversification. Relying on multiple income sources can help you weather market shifts and cost increases. While fixed-income investments like CDs or certain bonds may lose value during inflationary periods, assets like stocks and real estate often have the potential to keep pace with or even outpace inflation.

What a $2 Million Retirement Might Look Like

Let’s take a look at what retiring at 70 with $2 million might look like for a hypothetical married couple. Using the 4% rule, you can assume that they’ll withdraw $80,000 from their investment portfolios in their first year of retirement and then adjust for inflation. In this example, they were both born in 1985 and have an annual income of $100,000.

Let’s say they both retired and claimed Social Security at the age of 70, and their annual payments were $66,362 in their first year of retirement. With their portfolio withdrawals, their total annual income would be $146,362.

When you’re running your own numbers, remember to deduct taxes and living expenses from this amount. Common living expenses include your mortgage or rent payments, property taxes, transportation costs, as well as food and medical expenses. If you still have a mortgage or pay high property taxes, downsizing or moving to a less expensive area may be worthwhile if those expenses are straining your budget.

Bottom Line

A woman enjoying her retirement, having retired at 70 with $2 million.

For many people, $2 million can provide a comfortable retirement at 70, particularly when combined with Social Security and possibly other income sources. Still, the sustainability of your plan depends on your lifestyle choices, healthcare needs, location and investment strategy. Even at 70, inflation and longevity risk remain important considerations.

Tips for Retirement Planning

Consider talking to a financial advisor about strategies you can use to save $2 million for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Diversification is key to retirement savings, but you might have questions about exactly how to divide your assets up. That’s where SmartAsset’s free asset allocation calculator can come in handy.