Can You Retire at 35 If You’ve Saved $1 Million?

The idea of retiring early with $1 million by age 35 is appealing. But, whether that is enough depends on how long you will need it to stretch your nest egg and how you plan to live. If you withdraw around 3% to 4% annually, that gives you between $30,000 and $40,000 each year. This can be enough for a modest lifestyle, but tight if your expenses are higher. Where you live, your health costs and how you invest will all affect how far that money goes. A financial advisor can help you determine how much money you will need for retirement and recommend different strategies to reach that goal.

If you want to figure out how much you’ll need to save for retirement, begin by outlining what kind of life you expect to have once you stop working. Think about your housing situation, daily activities and any major plans, such as travel or relocating. The cost of your future lifestyle, whether modest or more expensive, will guide how much money you should set aside to cover your retirement goals.

After defining your goals, break down the costs you may face each month in retirement. While some regular expenses like work transportation or business attire may disappear, others like medical bills or long-term care often increase with age. You might also want to plan for entertainment, home maintenance, or helping children or grandchildren. A common rule of thumb suggests that you will need between 70% and 80% of your pre-retirement income to maintain your standard of living. But this estimate varies based on individual circumstances and retirement plans.

The time you have before retirement also plays a big role. Saving earlier gives your investments more time to grow, which may reduce the amount you need to set aside each year. If retirement is many years away, compound growth can do more of the work. But if you plan to retire soon—or live many years in retirement—you’ll likely need a higher total to cover expenses over time. Reviewing your savings regularly can help you stay on track.

Knowing where your retirement income will come from will help you figure out how much more you will need to save on your own. Your savings and investments will need to fill the gap between what you’ll receive from sources like Social Security or a pension and what you plan to spend.

You should also keep in mind that prices will rise over time because of inflation. This means the money you save today may buy less in the future. So accounting for inflation in your retirement savings plan can help you keep up with the cost of living in future years.

Finally, your retirement plan should change as your life changes. Job changes, family needs, or market ups and downs can affect how much you need or how you invest. Check your plan every year or after big life events to make sure it still fits your goals.

While $1 million represents a significant nest egg, whether it’s enough to retire at 35 will depend on your specific circumstances. Your lifestyle expectations, geographic location, health considerations and anticipated retirement age all play important roles in determining when you should retire.

Life expectancy and potential healthcare needs represent two additional factors when evaluating retirement savings. With Americans living longer than previous generations, your retirement funds may need to last 30+ years. Additionally, healthcare costs typically increase with age, with some estimates suggesting that retirees might need $300,000 or more just for healthcare expenses.

To cover these retirement expenses, many retirees supplement their savings with other income streams. If you receive a defined benefit pension, have rental property income, plan to work part-time or have other passive income sources, your retirement savings do not need to carry the entire financial burden. These additional revenue streams can make $1 million sufficient when they reliably cover a portion of your expenses.

Retiring at 35 with $1 million is an ambitious goal that requires careful planning and realistic expectations. While this milestone can provide financial independence, there are several important factors to consider before taking the leap into early retirement:

• Calculate your sustainable withdrawal rate: The traditional 4% rule may not work for a retirement that could last 50+ years. A more conservative withdrawal rate of 3% or less might be necessary to ensure your money lasts throughout your extended retirement timeline.

• Plan for healthcare costs: Without employer-sponsored insurance, you will need to budget for private health insurance until Medicare eligibility at 65. These costs can easily exceed $10,000 annually for a family and tend to increase faster than general inflation.

• Consider geographic flexibility: Living in a cheaper area, either domestically or internationally, can dramatically extend your savings. Some early retirees adopt a “geographic arbitrage” strategy, maintaining their quality of life at a fraction of the cost.

• Prepare for inflation’s impact: $1 million today won’t have the same purchasing power in 20 or 30 years. Your investment strategy needs to account for inflation, which historically averages around 3% annually but was 2.7% as of June 2025.

• Develop additional income streams: Many successful early retirees maintain part-time work, consulting jobs or passive income ventures. Even modest earnings of $20,000 or less annually can significantly reduce pressure on your investment portfolio.

Retiring at 35 with $1 million requires thorough preparation and flexibility. While challenging, this goal is achievable with disciplined saving, strategic investing and realistic lifestyle expectations. The key is creating a sustainable financial plan that can weather economic uncertainties over a potentially very long retirement horizon.

Early retirement with $1 million depends largely on controlling your expenses and possibly supplementing those savings with other income sources. It also requires the implementation of a conservative investment strategy that balances growth with preservation. Many who retire at 35 transition to more flexible work arrangements rather than stopping work entirely.

• A financial advisor who specializes in early retirement planning can help you create a personalized strategy that accounts for inflation, healthcare and your specific financial goals. 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.
• Mandatory distributions from a tax-deferred retirement account can complicate your post-retirement tax planning. Use SmartAsset’s RMD calculator to see how much your required minimum distributions will be.

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