Is $2 Million Enough to Retire at 60?

Whether $2 million is enough to retire at 60 depends on how much you plan to spend, how long you expect retirement to last and what other income sources you have. Some retirees can live comfortably on that amount. Others may fall short if healthcare costs rise, inflation picks up or spending increases. Your specific circumstances often determine the answer, as well as how the money is invested and withdrawn over time.

Talk to a financial advisor to determine how much you need to retire at 60, based on your portfolio.

Your life expectancy plays a key role in determining whether $2 million will be enough at 60. While the average life expectancy in the U.S. is 77.5 years, that figure includes people who die young. Once someone reaches age 60, their odds of living well beyond that average improve significantly.

According to the Social Security Administration’s Life Expectancy Calculator, a 60-year-old man can expect to live another 23.3 years, reaching age 83. A 60-year-old woman has a life expectancy of about 26.3 more years, bringing you to age 86. These are just averages, as many people live much longer, so you may need to plan for even more years.

The longer you live, the more years your savings need to cover. Retiring at 60 means planning for at least two and possibly three decades of spending. This increases the chances of facing long-term healthcare costs, periods of high inflation or market downturns. Evaluating your own health history and family longevity can help refine your personal estimate and give context to whether $2 million is likely to last.

Estimating retirement spending is just as important as estimating how long retirement will last. A common approach is to start with your current expenses and adjust for changes that often come with retirement, such as reduced commuting costs or mortgage payments but potentially higher healthcare spending. Lifestyle choices also matter. Travel, hobbies or supporting adult children can increase spending, while a more frugal routine might lower it.

Many financial planners suggest replacing 70% to 80% of your pre-retirement income to maintain a similar standard of living. For someone who earned $150,000 annually, that translates to roughly $105,000 to $120,000 per year in retirement. However, this rule of thumb does not apply evenly. High earners might need a lower percentage, while lower-income retirees could need more.

Inflation also affects long-term spending power. Even a modest inflation rate can significantly erode purchasing power over a 25- or 30-year retirement. Including annual increases—no matter how small—can make spending projections more accurate. The key is to build a plan based on expected lifestyle and expenses, rather than relying solely on generic benchmarks.

Retiring at 60 means covering healthcare costs for five years before Medicare eligibility begins at 65. This gap can be expensive, especially without employer-sponsored insurance. Premiums on the individual market can run thousands of dollars per year, and out-of-pocket expenses may rise with age.

Several options exist for bridging this coverage gap. One is to purchase a plan through the Health Insurance Marketplace, where subsidies may lower costs, depending on income. Some retirees reduce taxable income through careful withdrawals or Roth conversions to qualify for premium assistance. Others stay on a spouse’s workplace plan if available.

Long-term planning should also consider the cost of care after Medicare kicks in. While Medicare covers many services, it does not cover everything, and supplemental insurance or out-of-pocket costs can still be substantial. Factoring in these expenses early helps avoid surprises and protects retirement savings from unexpected medical expenses.

Social Security benefits form a key component of retirement income. Your lifetime earnings and your chosen claiming age determine your benefit amount. The Social Security Administration calculates your benefit using your highest 35 years of earnings, adjusted for inflation. In February 2025, the average monthly benefit for retired workers was approximately $1,980.86.

You can start receiving benefits as early as age 62, but this results in a permanent reduction. Specifically, if your full retirement age (FRA) is 67, claiming at 62 reduces your monthly benefit by 30 percent. If you delay past FRA, your benefit increases through delayed retirement credits, adding about 8% per year up to age 70.

When to claim benefits depends on your health, income needs and expected longevity. Delaying benefits can provide a higher monthly income later, but it requires other income sources in the meantime. Coordinating Social Security with other retirement assets can help create a comprehensive plan tailored to your situation.​

If you earned $150,000 before retiring, you might need $105,000 to $120,000 per year to maintain your lifestyle. With $2 million in savings, retiring at 60 is possible—but how long your money lasts will depend on your investments and returns, spending habits and when you claim Social Security.

A well-structured $2 million retirement portfolio often includes a mix of asset types designed to support income, growth and stability throughout retirement. These are common investment categories and their roles:

Filing for Social Security at age 62 provides the lowest monthly benefit but starts earlier. If your benefit is around $1,390 a month at 62 (approximately 70% of the average retired worker’s benefit in February 2025), that adds up to about $16,680 per year—leaving you to draw close to $100,000 from savings annually until other income sources begin. Depending on how long you live and how you invest your money, this could deplete your $2 million nest egg.

Waiting until full retirement age (67) would increase your benefit to the average monthly amount of $1,981, or about $23,772 per year. Delaying to 70 could push that to $2,460 per month, or $29,520 a year—about 24% more than the full retirement benefit. These higher amounts reduce how much you need to withdraw from savings later, helping the portfolio last longer.

You can bridge the gap with savings withdrawals, but doing so requires careful planning to avoid running out of money too soon. Lower spending or part-time income during the early years could also help stretch your $2 million across a potentially long retirement.

Deciding whether $2 million is enough to retire at 60 involves more than hitting a number—it depends on how you expect to live, how long you might live and how you balance spending with income sources like Social Security. The timing of retirement, healthcare coverage and investment strategy all play a role in how far your savings can go. A well-designed plan can help that $2 million support a variety of retirement goals.

• Run projections based on different retirement ages, rates of return and spending levels. Exploring a range of outcomes helps identify how small changes—like retiring a year later or saving slightly more—affect long-term success.
• A financial advisor can help you build a retirement plan tailored to your assets and goals. 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.

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