Back in the day, $ 1 million was the symbol of wealth and this amount is sufficient for an individual to consider for retirement. The ‘back in the day’ is referring to 20 or probably 30 years ago and along with the inflations, what does it take now for a retirement?

So let’s start with a simple calculation with the same magic number of $ 1 million and is earning 3% of interest per year. Imagine using a withdrawal rate of 5% or $50K a year (I assume 50K is a standard living cost per year for an ordinary individual), then the whole piece of $1 million will be fully wiped out just in 12 to 13 years from your retirement.

Personally, I would not consider retiring at the age of 55 with the saving of jus t$1 million. Some of the factors you should consider before retirement as below.

1) What, I’m going to do during after my retirement?
Free time isn’t free, so don’t assume you’ll be spending less money. Most of the time people will be going for vacations or working out their free time; which you needs money (example foods, transportation and so forth).

2) Do I have sufficient saving for my retirement?
Again we are talking about money (cost of living). We should consider with the amounts of saving, what are the lifestyle that the person can afford?

Now re-think again, the $1 million can just last for 12 to 13 years. Would you considering retiring at the age of 55? And how much do you need for retirement?