Mar 16, 2026
Most Americans believe they need roughly $1.28 million to retire comfortably, according to Schroders (1). So it’s easy to assume that if you have nearly twice as much — or $2 million — you would retire right away.
But for many millionaires, giving up their career and regular income isn’t easy. Many older workers would aim for “just a little more” before leaving work permanently. For some, there’s a deep-seated fear of running out of money, which keeps them working longer than they initially planned.
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However, here are three reasons why you may want to consider retiring as soon as you hit this milestone.
1. You’re wasting your healthiest years
Average life expectancy in the U.S. is 76.4 years, according to the World Health Organization (WHO), so you might think sacrificing a few more years in your late 50s and early 60s to work harder is worth it (2).
After all, you have plenty of time to enjoy the fruits of your labor, right? Well, the WHO also reports that health-adjusted life expectancy is lower — just 63.9 on average.
That means if you retire at 60, you may have only a few years of life, on average, in full health before the typical onset of chronic conditions or functional limitations. Beyond that point, you may gradually lose energy, mobility or the desire to travel or enjoy time with family.
This sacrifice might be justified if you were at risk of poverty in retirement. But with $2 million in your portfolio, it makes much less sense to keep working and trade away your healthiest years.
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2. You can certainly have a modest but comfortable retirement
Based on the standard 4% rule, $2 million could support a comfortable lifestyle for many retirees, depending on spending and market conditions.
The average household spends just $6,545 per month, according to Ramsey Solutions (3). However, that includes all age groups and families raising kids and paying mortgages or rent. Retired empty-nesters typically spend less. According to Fidelity, households between the ages of 65 and 74 spend about $65,149 a year on average (4).
Applying the 4% rule to $2 million would generate $80,000 in annual withdrawals. That does not account for Social Security benefits or any corporate pension you may have. Simply put, if you wanted to live a typical life, $2 million may be sufficient. However, if your lifestyle is more expensive or highly discretionary, it may not be.
Ultimately, you need to ask yourself how much is enough — and what lifestyle you’re comfortable maintaining.
3. You don’t have time to spend it all
Americans typically achieve millionaire status in their 50s and 60s, according to Empower (5). If you’re in your 60s with $2 million, actuarial tables suggest you may have roughly two decades of remaining life expectancy on average — depending on health and gender — based on conditional life expectancy data rather than the 76.4-year figure measured from birth.
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To put that in perspective, you would need an annual budget of $125,000 to deplete $2 million within 16 years — assuming zero investment returns and no additional income sources. In reality, diversified portfolios typically generate returns over time, though they also carry risk.
Simply put, you can enjoy a six-figure lifestyle with a reasonable margin of safety under typical market conditions. For an ordinary couple of empty nesters, that may be more than sufficient — especially when you account for Social Security benefits.
To be fair, some multimillionaires have a strong desire to leave a legacy. A sizable inheritance could certainly give your loved ones a financial boost.
That's a perfectly valid goal, and there's nothing wrong with it. But it's also not an obligation. You spent decades earning, saving and sacrificing to build this wealth. If you'd rather spend your money on experiences, travel, comfort and living well in your final chapters, that's equally valid. There's no rule that says your bank account needs to outlive you. The money was always meant to serve your life — not the other way around.
So, with $2 million, you can likely sustain a six-figure lifestyle for many years. While outcomes depend on markets, inflation, and longevity, the financial odds are generally favorable at that asset level.
Bottom line: you can keep working after you reach $2 million or more in assets — but there are compelling financial and personal reasons you may not need to.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Schroders (1); World Health Organization (2); Ramsey Solutions (3); Fidelity (4); Empower (5)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
