The Lifestyle a $3 Million Retirement Portfolio Can (and Can’t) Support

Core Insights - The average retirement savings balance for individuals aged 65 to 74 was approximately $609,000 in 2022, with stock market gains likely increasing this average in recent years [2] - A retirement nest egg of $3 million allows for a comfortable lifestyle, but requires careful management to avoid depleting savings [3][8] Retirement Income Potential - A $3 million portfolio can generate an annual income of $120,000 using the 4% withdrawal rule, not accounting for taxes or inflation adjustments [4][5] - When combined with an average Social Security benefit of about $2,500 per month, total annual income could reach approximately $150,000 [6][8] - The withdrawal rate may vary based on investment strategy; a conservative portfolio may limit withdrawals to 3%, while a stock-heavy portfolio could allow for larger withdrawals [7]