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For many Americans, retirement is not just about getting by, but about living comfortably and maintaining a middle-class lifestyle.
For example, earning $12,000 per month ($144,000 per year) in passive income can achieve this goal, both to cover daily expenses and to spend on travel, dining out, and other luxuries.
But reaching that level of income in retirement will require more than a lot of savings. Your savings must also be resilient enough to deal with inflation, market volatility and the risk of running out of money.
The financial threshold for this kind of retirement may be higher than most people expect. Here’s why.
Retirement on $144,000 is not common. According to a study by Northwestern Mutual, the “magic number” for retirement savings by 2025 is $1.26 million(1). Using the standard 4% rule, this equates to about $50,400 per year, or $4,200 per month in retirement income.
This number closely correlates with the median retirement income of $54,710 for Americans over age 65, according to 2023 U.S. Census Bureau data (2).
By comparison, targeting a monthly retirement income of $12,000 means the goal is close to three times Average income of retirees. To support spending levels using the 4% rule, you would need approximately $3.6 million in retirement savings.
This is already a lofty goal, but it only scratches the surface. Once inflation and longevity risks are taken into account, the bar becomes even higher.
If you’re looking to earn three times the average retirement income, you may benefit from working with an advisor. According to a report from Vanguard, people who work with a financial advisor see a 3% increase in net returns.
Range’s advisors provide white-glove financial services to high-income families.
Once your equity reaches this level, one of the most significant financial pain points may be asset management (AUM) fees. These fees mean the portfolio manager charges a percentage of the value of the assets you manage, usually between 0.5% and 2% – so as your wealth grows, so do their fees.
Range offers 0% AUM fees and a flat fee structure for advisory services so you can retain more of your wealth. They also offer all-in-one solutions for everything from alternative asset management to tax, meaning all your financial needs are covered.
Book a free demo today to see if Range is right for you.
Learn more: Warren Buffett turned $9,800 into a $150B fortune using 8 solid, repeatable money rules. Start using them to get rich (and stay rich) today
Even mild inflation can erode purchasing power over time. For example, if you retire at age 62 and live to age 82, an annual inflation rate of 2% will significantly reduce the purchasing power of your retirement income.
To maintain a standard of living of $144,000 in the first year of retirement would require approximately $214,000 per year by age 82.
Your ability to handle this depends largely on your investment strategy. If you rely primarily on low-risk assets like bonds or Treasury bills, you may need more than $3.6 million to keep pace with inflation.
Alternatively, you can invest in inflation-sensitive assets such as stocks, real estate, or gold. Many retirees do this. According to Empower, the average American in their 60s or 70s holds nearly half of their portfolio in stocks (3).
While these assets have higher long-term growth potential, they are also more volatile, making consistent withdrawals more difficult.
Gold prices have made global headlines this year as investors worried about stock market volatility put their faith in the inflation-hedge asset.
With the commodity recently trading at $4,185 an ounce, gold is proving to be a resilient and profitable investment for those seeking a stable retirement.
If you’re interested in investing in gold, Priority Gold can help. Providing physical delivery of gold and silver, it has an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link, which can help you feel confident in your precious metals investment.
Priority Gold also offers free shipping and free storage for up to five years. Also receive up to $10,000 in free silver with qualifying purchases.
Additionally, Priority Gold allows you to convert your existing IRA to a Gold IRA with 100% free rollover.
To learn more about how Priority Gold can help you grow your savings, download the free 2025 Gold Investor Bundle.
Whether you already own a home or not, a strong real estate portfolio can help you reach your goals of strong retirement income faster. But many people approaching retirement would rather avoid the stress of becoming a landlord in retirement.
Real estate platform Mogul offers fractional ownership of blue-chip rental properties, providing investors with monthly rental income, real-time appreciation and tax benefits, and freedom from the responsibilities of being a landlord.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rentals in the country for you. Simply put, you can invest in institutional-quality products without making a huge down payment. Each property goes through a vetting process that requires a minimum return of 12% even in adverse circumstances.
Sign up for an account today to browse available properties. Once you verify your information with their team, you can invest like a tycoon in just a few clicks.
If you’re looking to get into the vacation real estate market, Arrived allows you to invest in rental homes and vacation rental stocks without the responsibilities of property management.
Backed by world-class investors like Jeff Bezos, Arrived lets you browse a curated selection of homes, each vetted for appreciation and income potential. Once you find a property you like, simply select the number of shares you want to purchase.
You can start investing today with as little as $100.
Bill Bengen, the creator of the 4% rule, calls inflation “a retiree’s worst enemy.” In an interview with CNBC, he recommended adjusting the withdrawal rate each year based on inflation, rather than sticking to a fixed percentage (4). This reflects how Social Security benefits are adjusted to maintain purchasing power (5).
Ultimately, your ability to earn $12,000 per month in retirement depends on several factors:
That said, if your goal is to maintain a high standard of living for more than 20 years after retirement, $3.6 million might be a starting point.
One of the best ways to build a millionaire lifestyle in retirement is to make sure you understand today’s market. Financial literacy is key for everyone, but those who want to retire on $144,000 a year will need to know more than the average person to achieve such a high income level.
Investment advice tools like Moby can help take some of the guesswork out of choosing stocks and ETFs. Over four years, Moby’s recommendations outperformed the S&P 500 by an average of nearly 12% across nearly 400 stock picks.
With its easy-to-understand format, you can become a smart investor in just five minutes, and it comes with a 30-day money-back guarantee.
Plus, sign up for a 7-day free trial today and get the full Moby experience for $0.
We rely only on vetted sources and reliable third-party reports. For more information, see our Editorial Ethics and Guidelines.
Northwestern Mutual (1); U.S. Census Bureau (2); Empowerment (3); CNBC (4); Social Security (5)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
