When it comes to retirement, most people think you need at least a million dollars saved up to be able to live comfortably. But is that really the case? In this blog post, we will explore what it takes to retire on 2 million dollars and whether or not that is even possible. We will look at different scenarios and see how long it would take to retire on that amount of money. Keep reading to find out more!
- Is 2 Million Enough to Retire?
- Social Security
- How to Retire on 2 Million Dollars, Immediately
- Can You Retire on 2 Million Dollars in 5 Years?
- Living Off the Monthly Interest on 2 Million Dollars
- How To Retire On $2 Million By Age
- How Much Does $2 Million Payout?
- Why Annuities?
- Can A Couple Retire On 2 Million Dollars?
- Keeping Up With Inflation
- Things To Consider When Retiring
- Conclusion
- Find Out How Much Income Your $2 Million Will Provide In Retirement
- Retirement Income Guides
- Frequently Asked Questions
Is 2 Million Enough to Retire?
Can you retire on 2 million dollars? This guide will tell you how to retire on 2 million dollars for the rest of your life, guaranteed. In addition, we’ll provide estimates on your retirement income at different age brackets.
If you are close to transitioning to retirement, check our Retirement Planning Guide.
If you are not close to transitioning to retirement, check out our Guaranteed Retirement Income Guide.
Use an annuity calculator to get a better idea of the retirement income generated.
This guide will answer the following questions:
- Is 2 million enough to retire?
- Is 2 million enough to retire at 65?
- Can I retire at 40 with $2 million?
- Can I retire at 50 with 2 million dollars?
- How long will 2 million last in retirement?
- Can I retire at 55 with $2 million?
- Can my wife and I retire on 2 million dollars?
- How much income can I receive from 2 million dollars?
- What’s the monthly interest on 2 million dollars?
Social Security
The average monthly Social Security Income check-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 provide you a better idea of the income you could receive off a $2,000,000 in savings. The data will be based on:
- Social Security Benefits will be based on couples at $3,086 total.
- $2,000,000 annuity with an income rider providing a monthly income for life.
- The starting point will be age 62 since this is the earliest age to collect SSI.
How to Retire on 2 Million Dollars, Immediately
The table below illustrates how much monthly income can be generated immediately with a combination of annuity payments and Social Security Income (SSI).
ADDITIONAL READING: How Much Does A $1,000,000 Annuity Pay Per Month?
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $9,000 | $12,086 |
| 65 | $3,086 | $9,500 | $12,586 |
| 70 | $3,086 | $9,916 | $13,002 |
Can You Retire on 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:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $12,746 | $15,832 |
| 65 | $3,086 | $13,500 | $16,586 |
| 70 | $3,086 | $15,044 | $18,130 |
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 7 years with a fixed annuity, guaranteeing 3.25% annually.
Find all the current fixed annuity rates here.
How To Retire On $2 Million By Age
The following guaranteed income amounts are on an annual basis for the rest of your life and do not include Social Security Benefits.
Retire at 50 with $2 Million
| Annuity Purchase Date | Annual Income At 50 |
|---|---|
| Age 40 | $151,038 |
| Age 45 | $112,625 |
| Age 50 | $68,250 |
Retire at 55 with $2 Million
| Annuity Purchase Date | Annual Income At 55 |
|---|---|
| Age 40 | $164,454 |
| Age 45 | $163,156 |
| Age 50 | $122,499 |
| Age 55 | $80,000 |
Retire at 60 with $2 Million
| Annuity Purchase Date | Annual Income At 60 |
|---|---|
| Age 40 | $210,760 |
| Age 45 | $189,988 |
| Age 50 | $177,438 |
| Age 55 | $132,064 |
How Much Does $2 Million Payout?
The following table will provide an estimate of how much guaranteed income a $2,000,000 annuity will payout, annually, for the rest of a person’s life.
| Age | Immediately | In 5 Years | In 10 years | In 20 Years |
|---|---|---|---|---|
| 40 | $210,760 | |||
| 45 | $237,600 | |||
| 50 | $177,438 | $260,096 | ||
| 55 | $131,448 | $200,680 | $288,660 | |
| 60 | $105,000 | $152,956 | $213,372 | |
| 65 | $57,500 | $163,200 | $233,778 | |
| 70 | $125,000 | $180,200 | $282,168 | |
| 75 | $135,000 | $211,364 |
Why Annuities?
Currently, 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. The annuity is basically 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, ever.
Annuity Basics
Understanding Lifetime Income Riders
Can A Couple Retire On 2 Million Dollars?
Yes. Annuities provide an income option to pay a guaranteed amount each month for two lives. Once the first spouse dies, the annuity will continue to pay the same or a reduced amount for the rest of the surviving spouse‘s lifetime.
Keeping Up With Inflation
Some annuities offer a guaranteed lifetime income with the ability to increase regularly 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
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. Plan accordingly or decrease your lifestyle.
- Per the U.S. Department of Health and Human Services, you have a 70% chance of going into a Nursing Home, Assisted Living Facility, or Home Health Care. Buy long-term care insurance now.
- There is a 100% chance you will die, buy affordable life insurance, or at the minimum, burial insurance for funeral expenses.
Conclusion
If you want to retire on 2 million dollars for the rest of your life, annuities are the only way to go. Request a quote from us today and find out how much lifetime income you could receive from $2 million. With an annuity, you can be sure that 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!
Find Out How Much Income Your $2 Million Will Provide In Retirement
Retirement Income Guides
- Is 5 Million Enough To Retire at 60?
- How To Retire on 4 Million Dollars?
- How to Retire with $3 Million?
- Can I Retire at 60 with $1.5 Million?
- How to Retire on 1 Million Dollars.
- How to Retire with $500K.
- How to Retire on $200K Inheritance.
- How Much Shoud You Have in Retirement At Age 40?
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 level income of $68,415.36 annually for a life-only payout, $68,303.28 annually for a life with a 10-year period certain payout, and $67,871.40 annually for a life with a 20-year period 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 level income of $73,259.04 annually for a life-only payout, $73,075.80 annually for a life with a 10-year period certain payout, and $72,345.48 annually for a life with a 20-year period certain payout. Payouts change frequently and vary by state.
Can I retire at 50 with $2 million?
Yes, you can retire at 50 with 2 million dollars. At age 50, an annuity will provide a guaranteed level income of $79,200 annually starting immediately, for the rest of the insured’s lifetime. The income will stay the same and never decrease.
If the annuitant selected the increasing income option, they would receive $70,800 annually initially with the income amount increasing over time to keep up with inflation.
Either lifetime income option will continue to pay the annuitant, even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.
Can I retire at 55 with $2 million?
Yes, you can retire at 55 with 2 million dollars. At age 55, an annuity will provide a guaranteed level income of $84,000 annually starting immediately, for the rest of the insured’s lifetime. The income will stay the same and never decrease.
If the annuitant selected the increasing income option, they would receive $82,600 annually initially with the income amount increasing over time to keep up with inflation.
Either lifetime income option will continue to pay the annuitant, even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.
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 spouses’ lifetimes. After researching 326 annuity products from 57 insurance companies, our data calculated that $2,000,000 would generate $95,000 annually starting immediately if both spouses were age 60, $108,900 if both spouses were age 65, and $114,400 if both spouses were age 70.