$1 Million is a special milestone for retirement, advocated by many financial practitioners too. Why is $1 Million important for retirement? To lay out the context, $1 Million actually isn’t really a lot of money for retirement. Assuming you have $1 Million dollars at the age of 55 and retire and live till 85 years old, you can spend about $33,333 every year from age 55 onward. This is about $2777 per month for expenses which really is just enough factoring inflation in the future.

$1 Million on the other hand is a good base for creating a steady stream of income for retirement. If we can generate 4% annual interest/dividend on the $1 Million, it is $40,000 which translates to $3333 per month. This is quite a good income for retirement.

In this post, I’ll provide some realistic scenarios on what a typical average income earner’s savings will turn …