Is $2 Million Enough for a Couple to Retire?

Approaching retirement with $2 million in savings puts many couples in a strong financial position. But is $2 million enough for you and your spouse to retire comfortably? The answer depends on lifestyle, health, income needs and how long you expect retirement to last. Having a couple of million in the bank is sufficient for many couples, but it may not be enough for those with higher expenses or early retirement plans.

A financial advisor can help you analyze these variables and build a retirement strategy tailored to your goals. Connect with a fiduciary advisor today.

Is $2 Million Enough for a Couple to Retire?

To determine whether $2 million is enough for a couple to retire, you need a framework for measuring how long that amount of money could last. Applying some retirement planning benchmarks can shed light on whether a $2 million nest egg is too much, too little or just right.

The 80% Rule

A widely accepted guideline suggests that retirees need approximately 80% of their pre-retirement income to maintain their standard of living. This rule assumes that as you age in retirement, your expenses will decrease over time. 

Here’s an example of what the 80% rule might look like. Say you and your spouse earned a combined $150,000 annually before retiring. You’d aim to replace about $120,000 per year of that in retirement through portfolio withdrawals, Social Security, pensions and other sources.

If you pay off your mortgage, no longer have to worry about commuting expenses and are paying less in taxes, then $120,000 a year could be more than enough to meet your needs. Increasing your drawdown rate, however, could put your $2 million in savings to the test.

The 4% Rule

The 4% rule is a general guideline that suggests retirees can withdraw 4% of their portfolio in the first year of retirement, and then increase their annual withdrawals for inflation. This is considered to be a “safe” withdrawal rate, since theoretically, you wouldn’t have to worry about running out of money in retirement. 

Using this rule, you and your spouse could withdraw $80,000 from a $2 million portfolio annually, without depleting your savings. That assumes a 5% annual rate of return and a 3% annual inflation rate.This is a notable difference from the $120,000 you would need to have to cover your expenses following the 80% rule from the previous example.

The 4% rule is designed to ensure savings last for a 30-year retirement. However, it doesn’t guarantee success and doesn’t factor in other income sources like Social Security or pensions. Market performance, inflation and personal spending patterns can all affect how sustainable this withdrawal rate truly is.

Adding in Social Security

For a couple, Social Security can contribute significantly to annual income in retirement. If both you and your spouse receive the average retirement benefit—$1,955 per month, as of August 2025 ¹ —that’s $46,920 in combined annual Social Security income.

Combined with portfolio withdrawals, your total income would be $126,920 in year one—exceeding the 80% replacement guideline. This is likely sufficient for a moderate-to-comfortable lifestyle, assuming expenses don’t significantly increase due to health or long-term care needs.

When you time Social Security benefits matters. Waiting until full retirement age, which is 67 for people who turn 62 in 2025, ensures a full benefit amount. Delaying benefits to age 70 can increase your benefits, while taking Social Security before full retirement age shrinks the amount you receive.

Sample Asset Allocation for a $2 Million Retirement Portfolio

Your investment choices affect how long your retirement portfolio lasts and how much income it generates. Here’s a sample moderate allocation for a retired couple with $2 million:

• 40% in U.S. and international stocks = $800,000
• 40% in bonds and fixed income = $800,000
• 10% in cash or money market funds = $200,000
• 10% in real estate investment trusts (REITs) or dividend-paying ETFs = $200,000

Annual Income and Growth Potential

Assuming a 4–5% average annual return across the full portfolio, here’s a simplified income projection:

• $2,000,000 × 4.5% = $90,000 in potential annual return

This return could be reinvested for growth or used as income, depending on your withdrawal needs. Holding some assets in cash or short-term bonds adds liquidity and protects against volatility.

A diversified portfolio can also help hedge against inflation, generate dividend income and preserve capital over a long retirement horizon.

Sample Retirement Budget for a $2 Million Retirement Portfolio

One important step in determining whether $2 million is enough is to estimate your retirement spending. Your expenses will vary depending on location, lifestyle and health.

Sample Monthly Budget

This budget leaves ample room under the projected $126,920 in annual income we calculated earlier, giving the couple flexibility for travel, emergencies and estate planning.

Factors That Can Affect Your Budget

Your savings matter, but location, lifestyle and healthcare needs also shape your retirement budget. Even with strong savings, these factors can limit how far your money stretches. As you plan for the years ahead, it’s important to think about the big-picture factors that could raise or lower your annual expenses. Below are some of the most common elements that can influence a couple’s retirement costs.

• Location: Retiring in a high-cost urban area like San Francisco or New York may require significantly more annual income while living in a low-cost state like Tennessee or Arizona could reduce costs.
• Healthcare: Even with Medicare, out-of-pocket costs can rise with age. A couple that retired in 2025 at 65 may spend approximately $345,000 on healthcare (not including long-term care) throughout retirement, according to Fidelity ² .
• Long-term care: Fidelity’s estimate doesn’t reflect the cost of long-term care in a nursing home. You might pay anywhere from $111,325 to $127,750 per year ³ for that, depending on whether you request a semi-private or private room. Medicare doesn’t cover long-term care; Medicaid does, but you may need to spend down assets to qualify. 
• Lifestyle: Frequent travel, expensive hobbies, or ongoing support for children or grandchildren can significantly increase your spending. Choosing an early retirement that’s well ahead of the typical retirement age may not increase spending, but it can ramp up the pressure to save enough.

Risks That Could Undermine a $2 Million Retirement

A retirement portfolio of $2 million provides a strong foundation, but its durability depends on how well it withstands a range of risks over time. Here are some of the biggest potential threats couples may face when planning their retirement future:

• Market volatility. If negative returns occur in the first years of retirement, withdrawals can compound the losses and permanently reduce the portfolio’s ability to recover, a dynamic known as sequence-of-returns risk. This can cause a plan that looks sustainable on paper to fall short in practice.
• Inflation. Even modest increases in the cost of living can erode purchasing power significantly over a 20- to 30-year retirement. A couple drawing $90,000 annually today will require substantially more income in later years to maintain the same standard of living. If your investment returns don’t keep pace, the withdrawals needed to fill the gap may drain your principal more quickly than anticipated.
• Healthcare. While Medicare provides a baseline of coverage, premiums, deductibles, copays, and the cost of services not covered by Medicare can add up to hundreds of thousands of dollars over a long retirement. The risk of long-term care is particularly difficult to plan for, since the costs are high and the need is unpredictable. For instance, one spouse requiring extended care late in life can sharply reduce the resources available to the surviving partner.
• Longevity. If one or both spouses live into their 90s, the portfolio may need to support three decades or more of withdrawals, during which any combination of market downturns, rising costs, or healthcare shocks could occur. A $2 million nest egg can provide security, but without careful planning that integrates investment management, withdrawal discipline, and protection against healthcare and longevity risks, it may not be enough to guarantee lasting financial stability.

Bottom Line

Is $2 million enough for a couple to retire? For many couples, the answer is yes, especially when paired with Social Security and a moderate lifestyle. A $2 million investment portfolio can generate around $80,000 in your first year of retirement under the 4% rule. With Social Security, the combined income could reach nearly $130,000 per year. However, it’s important to consider your specific needs and goals to find a number that’s right for you.

Retirement Planning Tips

• A financial advisor can help you project how long your savings will last and how much income your assets will generate. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• SmartAsset’s retirement calculator can help model your financial future based on your age, savings and income needs. This free tool allows you to run different scenarios and see how long your money might last under various assumptions.

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