What is the average sum of money in a retirement fund that allows a person to live off it? One million?

Oldman answered 2 months ago …

If you have a retirement account that after taxes, can be depleted by 4-5% a year, to cover expenses not covered by any pension, superannuation, social security, etc....and the funding can grow at 2-3 % above inflation...you probably will have an idefinite time.

However, getting 2-3 % > inflation is pretty difficult. Also average returns are just that...for instance, over a span of 10 years, there may be value losses or gains that are pretty abrupt, so either you hold a 5 year liquid portion (so you don't need to sell in a down market) or you purchase an annuity with a portion of the retirement funds to have a minimum income.

There are many retirement income planning tools available on the web, but you need to have a retirement budget...and costs for medical care go up greatly, while discretionary expenses for travel, entertainment and commuting/clothing expenses, tend to go down, in retirement.

if you are retiring soon, a 1 million retirement portfolio could provide 30 years of withdrawals of 3-5%/year, indexed for inflation...but if the market tanks, and inflation surges as in the late 70's and early 80's, there would be a tremendous drawdown of the principal to try to keep up with inflation.

On the other hand, if you have plans to retire in 20 years, then a portfolio of 2-6 million, with substantial holdings of foreign stocks and precious metals might be a better idea, with relocation to a foreign country with a stable society and reasonable services.