Approaching retirement with $2 million in savings puts many couples in a strong financial position. But is $2 million enough for you and your spouse to retire comfortably? That answer depends on lifestyle, health, income needs and how long you expect retirement to last. While $2 million covers retirement for some couples, it may not be enough for those with higher expenses or early retirement plans.
Is $2 Million Enough for a Couple to Retire?
To determine whether $2 million is enough for a couple to retire, it helps to start with some common retirement planning benchmarks.
The 80% Rule
A widely accepted guideline suggests that retirees need approximately 80% of their pre-retirement income to maintain their standard of living. For example, if you and your spouse earned a combined $150,000 annually before retiring, you’d aim to replace about $120,000 per year in retirement through portfolio withdrawals, Social Security, pensions and other sources.
Now let’s see how $2 million holds up to this benchmark.
The 4% Rule
The 4% rule is a general guideline that suggests retirees can withdraw 4% of their portfolio in the first year of retirement, and then increase their annual withdrawals for inflation. Using this rule, you and your spouse could withdraw $80,000 from a $2 million portfolio in your first year of retirement.
This approach is designed to ensure savings last for a 30-year retirement. However, it doesn’t guarantee success and doesn’t factor in other income sources like Social Security or pensions. Market performance, inflation and personal spending patterns can all affect how sustainable this withdrawal rate truly is.
Adding in Social Security
For a couple, Social Security can contribute significantly to annual income in retirement. If both you and your spouse receive the average retirement benefit—$1,997 per month, as of March 2025—that’s $47,928 in combined annual Social Security income.
Combined with portfolio withdrawals, your total income would be $127,928 in year one—exceeding the 80% replacement guideline. This is likely sufficient for a moderate-to-comfortable lifestyle, assuming expenses don’t significantly increase due to health or long-term care needs.
Your investment choices affect how long your retirement portfolio lasts and how much income it generates. Here’s a sample moderate allocation for a retired couple with $2 million: Assuming a 4–5% average annual return across the full portfolio, here’s a simplified income projection: This return could be reinvested for growth or used as income, depending on your withdrawal needs. Holding some assets in cash or short-term bonds adds liquidity and protects against volatility. A diversified portfolio can also help hedge against inflation, generate dividend income and preserve capital over a long retirement horizon.
A critical step in determining whether $2 million is enough is to estimate your retirement spending. Your expenses will vary depending on location, lifestyle and health. This budget leaves ample room under the projected $127,928 in annual income we calculated earlier, giving the couple flexibility for travel, emergencies and estate planning. Your savings matter, but location, lifestyle and healthcare needs also shape your retirement budget. Even with strong savings, these factors can limit how far your money stretches. As you plan for the years ahead, it’s important to think about the big-picture factors that could raise or lower your annual expenses. Below are some of the most common elements that can influence a couple’s retirement costs. Is $2 million enough for a couple to retire? For many couples, the answer is yes, especially when paired with Social Security and a moderate lifestyle. A $2 million investment portfolio can generate around $80,000 in your first year of retirement under the 4% rule. With Social Security, the combined income could reach nearly $130,000 per year. Photo credit: ©iStock.com/Vadym Pastukh, ©iStock.com/Jacob Wackerhausen, ©iStock.com/PeopleImages Read the full article hereSample Asset Allocation for a $2 Million Retirement Portfolio
Annual Income and Growth Potential
Sample Retirement Budget for a $2 Million Retirement Portfolio
Sample Monthly Budget
Category
Estimated Monthly Cost
Housing (property tax, insurance, maintenance)
$2,175
Utilities & Internet
$300
Groceries
$700
Transportation (fuel, insurance, maintenance)
$400
Healthcare (Medicare premiums, copays, prescriptions)
$800
Travel & Entertainment
$600
Dining Out
$300
Insurance (life, long-term care)
$200
Miscellaneous & Gifts
$300
Total Monthly
$5,775
Total Annual
$69,300
Factors That Can Affect Your Budget
Bottom Line
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