Is $1 Million Enough to Retire in 2025? How Much You Really Need

Is $1 million enough to retire? Learn how Citizens Bank's 10–12x final-salary rule and the 4% withdrawal guideline affect your retirement planning decisions.

A decade ago, a $1 million nest egg often meant a comfortable retirement. Today, rising living costs and longer lifespans have changed the picture. Citizens Bank recommends saving 10 to 12 times your final annual salary for retirement — a useful benchmark that helps answer the common question: is $1 million enough to retire?

Put simply, whether $1 million is enough depends on your final salary and lifestyle. Using the 10–12x rule, someone with a final salary of $100,000 would need $1 million to $1.2 million saved. If your last working salary is $80,000, $1 million represents about 12.5 times that income, which might be adequate under that guideline. That said, other rules of thumb — like the 4% withdrawal rule — also matter: withdrawing 4% from $1 million yields $40,000 per year before taxes.

Beyond these formulas, several factors influence whether $1 million will cover retirement costs: location and cost of living, expected healthcare and long-term care expenses, Social Security or pension income, desired lifestyle and travel, and how long you live. Inflation and market returns can further change how far your savings will stretch.

Practical steps to evaluate your situation include estimating annual retirement expenses, subtracting guaranteed income (Social Security, pensions), and calculating the gap your savings must fill. If $1 million produces a sustainable annual withdrawal combined with guaranteed income, it might be enough. If not, options include delaying retirement, reducing spending, saving more, or adjusting investment strategy.

For many people, $1 million remains a powerful milestone — but it’s no longer a one-size-fits-all guarantee of financial security. Smart retirement planning uses personalized targets (like the Citizens Bank 10–12x guidance), realistic spending estimates, and regular reviews to adapt to changing circumstances.

If you’re wondering whether your $1 million will last, run the numbers: estimate annual needs, apply conservative withdrawal assumptions, and factor in Social Security. Consider consulting a financial planner to create a retirement plan tailored to your goals, location, and life expectancy. Doing so will give you a clearer, more confident answer than any single rule of thumb.

Back