Is $2 Million Enough To Retire?

Shawn Plummer

CEO, The Annuity Expert

Can I Retire On $2 Million? Is It Enough Money?

Yes, you can retire with $2 million. By using annuities, you get a contractually guaranteed annual income for life. If you start at age 62, you’d get around $151,000 annually. Starting at age 65, it’s about $158,600 per year, and at age 70, it increases to roughly $171,000. This calculation doesn’t include Social Security benefits.

How Long Will $2 Million Last In Retirement Calculator

Annuities guarantee an income for the rest of your life. Use our retirement calculator to determine how much income your two million dollars can generate now or in the future. Then, request a free quote below.

Note: You can purchase an annuity (with no tax penalties) with your 401k, IRAs, retirement accounts, investments, and cash.

Is 2 Million Dollars Enough To Retire

How Long Will $2 Million Last In Retirement?

Your $2 million retirement duration depends on your living expenses, other income sources, inflation, and lifestyle. If your annual basic expenses are $80,000, without inflation, the money lasts 25 years. However, with 3% annual inflation, it lasts 20 years. A luxurious lifestyle, like frequent travel and staying in 5-star hotels, will deplete the funds faster, possibly in ten years. So, the longevity of your $2 million depends on how modestly or lavishly you live and manage your expenses.

Is $2 Million Enough To Retire?

How To Make $2 Million Last A Lifetime In Retirement, Guaranteed.

To ensure you never run out of money in retirement, you can buy an annuity with a lifetime income rider. This contractually guarantees a fixed monthly income for life. For instance, if someone aged 55 buys a $2 million annuity with this option and retires at 65, they would get about $23,803 every month for life. After the annuity holder’s death, any remaining funds are given to their beneficiaries as a lump sum.

How Long Will $2 Million Last In Retirement? How Long Will 2 Million Dollars Last In Retirement?

Social Security

The average monthly Social Security Income check-in in 2021 is $1,543 per person. In the tables below, we’ll use an annuity with a lifetime income rider coupled with SSI to better understand the income you could receive from $2,000,000 in savings. The data will be based on the following:

How To Retire On 2 Million Dollars Immediately

The table below illustrates how much monthly income can be generated immediately with annuity payments and Social Security Income (SSI).

ADDITIONAL READINGHow Much Does A $1,000,000 Annuity Pay Per Month?

AgeSSIAnnuityTotal
62$3,086$12,583$15,669
65$3,086$13,217$16,303
70$3,086$14,250$17,336
Total = Monthly Income for Life

Can You Retire With 2 Million Dollars In 5 Years?

The table below illustrates how much monthly income can be generated in 5 years with a combination of annuity payments and Social Security Income (SSI). If you retire in 5 years on a $2,000,000 annuity, your monthly income for life would be:

AgeSSIAnnuityTotal
62$3,086$19,136$22,222
65$3,086$19,820$22,906
70$3,086$21,217$24,303
Total = Monthly Income for Life

Living Off the Monthly Interest On 2 Million Dollars

Some retirees like to withdraw interest from a fixed-interest savings account like a fixed annuity or CD. For example, the interest on two million dollars is $501,845.11 over seven years with a fixed annuity, guaranteeing 3.25% annually.

Find all the current fixed annuity rates here.

Retire at 50 with $2 Million.

The following are guaranteed income amounts for the rest of your life if you purchase an annuity with a lifetime rider at age 50. These amounts do not include Social Security.

Annuity Purchase DateAnnual Income At 50
Age 40$239,641
Age 45$167,200
Age 50$125,000

Retire at 55 with $2 Million.

The following are guaranteed income amounts for the rest of your life if you purchase an annuity with a lifetime rider at age 55. These amounts do not include Social Security.

Annuity Purchase DateAnnual Income At 55
Age 40$273,272
Age 45$240,508
Age 50$176,400
Age 55$130,000

Retire at 60 with $2 Million.

The following are guaranteed income amounts for the rest of your life if you purchase an annuity with a lifetime rider at age 60. These amounts do not include Social Security.

Annuity Purchase DateAnnual Income At 60
Age 40$315,655
Age 45$310,129
Age 50$277,600
Age 55$193,386

How Much Does a $2 Million Payout?

The following table will estimate how much guaranteed income a $2,000,000 annuity will pay out annually for the rest of a person’s life.

AgeImmediatelyIn 5 YearsIn 10 yearsIn 20 Years
40$315,655
45$167,200$240,508$350,836
50$125,000$176,400$277,600$423,900
55$130,000$196,650$287,808$464,400
60$144,000$220,001$317,069$469,800
65$158,600$237,839$340,318$533,200
70$171,000$254,600$399,099$657,868
75$175,800$285,373
What Age Can You Retire With $2 Million?

Why Annuities?

Annuities are the only retirement plan in the United States that provides a guaranteed income for a lifetime, even if the plan runs out of money. As a result, the annuity is a money management tool in retirement, taking all the guesswork in budgeting your day-to-day expenses. By utilizing this financial plan, a retiree will never have to worry about running out of money, and you’ll be able to earn interest along the way!

Annuity Basics

Understanding Lifetime Income Riders

Can A Couple Retire On 2 Million Dollars?

Yes, $2 million should be enough to retire. Annuities provide an income option to pay a guaranteed monthly amount for two lives. Once the first spouse dies, the annuity will continue to pay the same or a reduced amount for the remaining surviving spouse’s lifetime.

Related Tools: Use our retirement calculator for couples

Estimate Your Retirement Income Payments

Use our annuity calculator to generate estimates, then request a quote.

Keeping Up With Inflation

Some annuities offer a guaranteed lifetime income that can regularly increase to keep up with inflation. Once the income increases, the payment amount is locked in and can never go backward from that point forward.

Example

Inflation Annuity

Things To Consider When Retiring

  • If you can’t afford to lose money, invest your savings without the risk.
  • Inflation is rising whether you like it or not. So, plan accordingly or decrease your lifestyle.
  • Per the U.S. Department of Health and Human Services, you have a 70% chance of entering a Nursing Home, Assisted Living Facility, or Home Health Care. So buy long-term care insurance now.
  • There is a 100% chance you will die, so buy affordable life insurance or, at the minimum, burial insurance for funeral expenses.

Next Steps

So, is $2 million enough to retire? If you want to retire comfortably for the rest of your life (guaranteed), annuities are the only way.

Request a quote from us today and determine how much lifetime income you could receive from $2 million. With an annuity, you can be sure you’ll have a guaranteed income for as long as you live – no matter what happens in the stock market or with Social Security.

So what are you waiting for? Contact us today, and let’s get started on your retirement plan!

Can You Retire On $2 Million? Is $2 Million Enough To Retire? How Long Will It Last?

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Frequently Asked Questions

Can I retire at 40 with $2 million?

Yes, you can retire at 40 with 2 million dollars. At age 40, an immediate annuity will provide a guaranteed income of $110,052 annually for a life-only payout, $107,484 annually for life with ten years certain payout, and $106,548 annually for life with 20 years certain payout. Payouts change frequently and vary by state.

Can I retire at 45 with $2 million?

Yes, you can retire at 45 with 2 million dollars. At age 45, an immediate annuity will provide a guaranteed income of $114,360 annually for a life-only payout, $112,104 annually for life with ten years certain payout, and $110,544 annually for life with 20 years certain payout. Payouts change frequently and vary by state.

Can I retire at 50 with $2 million?

You can retire at 50 with $2 million, receiving a guaranteed $125,000 annually for life through an annuity. Alternatively, by choosing the increasing income option, you’d start with $87,000 annually, which would rise with inflation. Both options ensure payment even after depleting the annuity funds, and upon the annuitant’s death, any remaining amount goes to a designated beneficiary.

Can I retire at 55 with $2 million?

If you retire at 55 with $2 million, an annuity offers a fixed $130,000 annual income for life. Alternatively, an increasing income option starts at $93,000 annually and adjusts with inflation. Both choices ensure lifetime payments even after the annuity is exhausted, and any leftover amount is inherited by a designated beneficiary upon the annuitant’s death.

Can a couple retire on 2 million dollars?

Yes, a couple can retire on two million dollars. Annuities can provide a guaranteed income for both spouse’s lifetimes. After researching 326 annuity products from 57 insurance companies, our data calculated that $2,000,000 would generate $115,750 annually starting immediately if both spouses were age 60, $132,000 if both were age 65, and $144,000 if both were age 70.

How long will 2 million last in retirement?

According to financial experts, determining how long 2 million will last in retirement depends on various factors. These include lifestyle, anticipated expenses, and investment returns. However, with conservative estimates, assuming a withdrawal rate of 4% annually, 2 million could potentially last for approximately 30 years. It is advisable to consult a financial planner for personalized calculations based on individual circumstances.

What percentage of retirees have $2 million dollars?

According to recent studies, only a small percentage of retirees have accumulated 2 million dollars for retirement. While it’s difficult to determine an exact figure, it is estimated that less than 10% of retirees have reached this financial milestone.

What age can you retire with $2 million?

The age at which one can retire with $2 million depends on several factors, including savings rate and investment returns. Assuming a conservative 4% annual withdrawal rate, someone would be able to retire at age 65 with $2 million, expecting an annual income of $80,000. However, individual circumstances and goals may vary, so it is important to consult a financial advisor for personalized advice.

Retirement Income Guides

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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