Finance
Can You Retire Comfortably on $750,000 in Savings?
Being financially comfortable in retirement should be a main financial goal for everyone. Your golden years should be a time to relax, not stress over how your expenses will get paid. It’s easier said than done, but that should be the goal as you go through your career and save for retirement.
How much someone needs for retirement will vary widely because expenses and lifestyles inevitably vary. But if you are able to stash $750,000 away, are you in the clear to retire comfortably? Not according to Northwestern Mutual’s 2026 Planning & Progress Study, which estimates that it would take $1.46 million to retire comfortably this year.
That said, everyone’s situation is different, and many people will be able to survive off $750,000. Let’s take a look at how.
Where you retire will have a lot to do with the answer.
Being financially comfortable in retirement should be a main financial goal for everyone. Your golden years should be a time to relax, not stress over how your expenses will get paid. It’s easier said than done, but that should be the goal as you go through your career and save for retirement.
How much someone needs for retirement will vary widely because expenses and lifestyles inevitably vary. But if you are able to stash $750,000 away, are you in the clear to retire comfortably? Not according to Northwestern Mutual’s 2026 Planning & Progress Study, which estimates that it would take $1.46 million to retire comfortably this year.
That said, everyone’s situation is different, and many people will be able to survive off $750,000. Let’s take a look at how.
Image source: Getty Images.
So, how much will you actually need in retirement?
One of the more common baselines is the “4% rule,” which suggests you can withdraw 4% of your savings (typically a mixture of stocks and bonds) in your first year of retirement and then adjust your withdrawals in subsequent years for inflation.
For example, if you start with $750,000, you would withdraw $30,000 in the first year. If inflation rose by 3%, you’d withdraw $30,900 in the next year. If inflation increased by 4% the year after that, you’d withdraw $32,136. Ideally, using the 4% rule would mean that your savings would last you 30 years.
If your retirement expenses are around $30,000, then $750,000 is doable using the 4% rule. If they’re more than that, you’ll need some assistance from sources like Social Security. With a $2,000 monthly Social Security benefit (the average for a retired worker was $2,081 in April), that’s an extra $24,000 annually.
Many people will be able to survive on the $4,500 monthly in our example ($2,500 from savings, $2,000 from Social Security).
Where you retire matters
Unsurprisingly, location affects how much you need in retirement. If you’re planning to retire in California, Hawaii, or Connecticut, you’ll face a much higher cost of living than if you retired in Arkansas, Indiana, or Ohio. Some states are also much more tax-friendly than others, allowing tax-free withdrawals on retirement accounts or no taxes on Social Security benefits (federal taxes still apply).
Nine states don’t tax any income at all (Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming), and four states (Illinois, Iowa, Mississippi, and Pennsylvania) give special exemptions for retirement income that comes from your 401(k), IRA, or pension.
Most people won’t pay taxes on their Social Security benefits, but eight states still have some sort of tax: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.
Taxes shouldn’t be the only reason you choose to live somewhere, but it’s worth keeping in mind if you’re deciding between places. Your $750,000 could stretch a lot further depending on where you decide.