We're 65 With $1.9 Million Saved and $5,200 Monthly Social Security. What's Our Retirement Budget?

Core Insights - The article emphasizes the importance of creating a comprehensive retirement budget that accounts for both income sources and expenses, highlighting the variability of expenses compared to income [2][3] - It discusses the potential growth of retirement accounts and the impact of delaying retirement on Social Security benefits, which can enhance retirement income [4][3] Income Considerations - A retirement account balance of $1.9 million can generate investment-based income, with the possibility of growth if retirement is delayed [3] - The 4% rule suggests that withdrawing 4% of the retirement savings annually is a conservative strategy, allowing for a first-year withdrawal of $76,000, adjusted for inflation in subsequent years [5][6] - Combined Social Security benefits of $62,400 annually, along with investment withdrawals, can provide a total income of $138,400 in the first year, offering flexibility for retirees [7] Spending Projections - An annual income of $138,400 is generally sufficient for a comfortable lifestyle for many retirees [8] - A rule of thumb for estimating post-retirement income needs is to multiply pre-retirement income by a percentage ranging from 70% to 90% or higher, depending on individual circumstances [8]