Financial advisors say $900K can be enough to retire — but only if you stop obsessing over the $1 million milestone

Financial advisors say $900K can be enough to retire — but only if you stop obsessing over the $1 million milestone

Christy Bieber

Fri, August 14, 2026 at 8:00 PM GMT+3 5 min read

In the United States, the average household net worth is $1,063,700, while the average net worth among 65- to 74-year-olds is $1,794,600. If this seems far higher than you expect, it's because wealthy people drive up the averages. The overall median net worth is much lower: $192,900 overall.

If you want a comfortable retirement, you may need to be closer to the average than the median, at least according to many Americans. In 2026, U.S. adults said they believe they need $1.46 million to retire comfortably.

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Let's pretend, for example, that Steve always believed that he'd be in great financial shape once he saved a million — but now he's 64, has $900,000 saved, and he's hearing warnings everywhere that $1 million is no longer good enough.

The reality is, his $900,000 nest egg would provide an income of roughly $36,000 per year, under the 4% rule. That's not exactly a fortune. So, should Steve be worried and put off retirement for a few more years to grow his nest egg, or is he good to retire now and start enjoying his later years?

Whose retirement is Steve trying to plan for?

Steve isn't the only one worried about whether $1 million is a reasonable sum. Surprisingly, most millionaires don't even think they're well off. Only 36% of people with $1 million in investable assets define themselves as "wealthy."

But Steve shouldn't let dire warnings that $1 million isn't enough for retirement scare him, because whether that amount is sufficient or not depends on his individual circumstances.

"The first thing I ask is whether someone is trying to live their retirement or someone else's, because $1 million could be a completely different number to different people," Christopher Walsh, a financial advisor at Capital Choice Financial Group, told Moneywise.

Walsh explained that, while people in expensive areas like California or New York may find $1 million insufficient, those in the Great Plains or Midwest may be comfortable with a much smaller nest egg.

"It also depends on lifestyle," he added. "Are you trying to take several vacations a year, or are you simple and you just want to work on things around the house?"

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Steve is looking at the wrong number

Steve may also be worrying needlessly because he's not handling his planning the right way.

"I think $1 million is the wrong number to focus on," Walsh said. "People shouldn't focus on how much is in their bank account, but on whether they have enough to retire with confidence and with the right amount of income to take care of their needs."

Walsh recommended that Steve look carefully at how much money he must spend to have the retirement he wants, and then find "confident ways to produce a consistent, reliable income from month to month." This could come from his investment income, but it could also come from other sources like Social Security.

"If you're at least 62, you could potentially start taking Social Security and use that as part of your income," suggested Domenick D'Andrea, founder of DanDarah Wealth Management. The average Social Security retiree benefit in January 2026 was $2,071, so that's another $24,852 if Steve's benefit is around the norm.

Of course, claiming Social Security any time before the age of 67 is an early claim if you were born in 1960 or later, and that means reducing the amount of your monthly benefit permanently. But if you're worried about having funds to live on, Social Security is an option.

So, can Steve retire?

So, now for the big question. Can Steve retire with his $900,000?

"It is possible to retire on $900,000, and I have set up clients with similar dollar amounts, and they are living a great retirement," D'Andrea said. "If you have limited fixed expenses like no mortgage or very little debt, then it could work. Any dollar amount can potentially be enough to live on, with proper planning depending on your overall needs."

And Walsh agrees with the power of a plan. "From what I've learned, most people only really need one thing to retire with confidence, and that's a consistent, reliable income they can count on month in and month out and that they can properly budget around."

Steve should take a close look at his spending needs, his Social Security, the money his investments can produce, and any other income sources he has. Odds are good that, depending on those income sources and his lifestyle choices, his $900,000 may be more than enough for him.

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This article originally appeared on Moneywise.com under the title: Financial advisors say $900K can be enough to retire — but only if you stop obsessing over the $1 million milestone

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.