The American Retirement Challenge: How Far Can You Get With $1 Million?
And here's the SPC Plan to help deliver that "American Dream" ..
There’s a new study that looks at how long $1 million lasts in retirement — and says it all depends on where in the United States you retire to.
That retirement continuum ranges from a low of 12 years in Hawaii to highs of 87 years in Mississippi and 89 years in West Virginia, says the newly released study by GOBankingRates.com.
That’s one heck of a range.
Go figure …
Or … maybe … as the old maxim tells us: “Figures lie … and liars figure.”
In April 2024 — so almost exactly a year ago at this time — a study found that this same $1 million would last as little as 10 years in Hawaii to as long as 23 years in Hawaii.
The group that did last year’s study: GOBankingRates.com — the same personal finance site that did the grand new study.
That’s a huge disparity in a single year’s time, and the numbers went the wrong way: With inflation, surging uncertainty and growing risk, retirement affordability should get worse — not better.
SO YOU WANT TO BE A MILLIONAIRE
Look, I’m not actually challenging the researchers. My guess is the underlying figures they used this year were dramatically different from last year’s.
Besides, it’s kind of a moot point, isn’t it?
I mean … most Americans don’t have a million dollars.
According to research by financial-services player Credit Karma, nearly 30% of folks aged 59 or older have nothing saved for retirement.
Nothing.
The same study found that Baby Boomers have median retirement savings of just $120,000.
Going by the numbers in this year’s study, that’s only a year-and-a-half in Hawaii and a mere 11 years in West Virginia.
That’s probably why Americans believe they need $1.8 million for retirement, says broker Charles Schwab Corp. SCHW 0.00%↑.
That, too, falls short of the mark: While there are more millionaire households in America today than ever before, that million bucks doesn’t go as far as it used to.
Just look …
As you read this, there are about 23.7 million millionaire households here in America.
That’s up from 23.2 million last year.
And 9.63 million in 2014.
One final point of reference: In 1997, the year after the best-seller “The Millionaire Next Door” made its debut, approximately 5.3 million American households had a net worth of $1 million or more.
To have the million-dollar equivalent from 1997 here in 2025, you’d need about $2 million.
That’s right: That “Millionaire” status ain’t want it used to be.
In fact, as I detailed in a recent Stock Picker’s Corner (SPC) report, $1 million won’t buy that “American Dream.” Nor will that $1.8 million most Americans believe will buy a great retirement.
In reality, $10 million is the “New $1 million.” And the “Single-Digit Millionaire” no longer gets it done.
But this plan — detailed a few months back in one of the best-read reports we’ve shared since launching SPC — will get you started
Check it out … let me know what you think.
See you next time;
