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When it comes to retirement planning, evaluating your savings is a big part of the process. The state of your retirement savings can greatly influence when you decide to retire.
Take 61-year-old Jim, for example. He worked in corporate America for most of his career, and after being laid off, he wondered if maybe it was time to take a step back. Before his layoff, he and his wife, Helen, collectively earned $300,000 a year. They are debt-free and have a combined savings of $1.5 million.
While Jim would like to retire now, the decision depends on several factors, including: when Helen plans to retire, how much she needs to live comfortably, how long her savings will last, and the roles Social Security and Medicare will play in her plan.
To figure it out, let’s get into the numbers.
The retirement landscape has changed dramatically since the beginning of the century. According to the Center for Retirement Research, the average retirement age is now three years later than in the 1990s (1).
On the other hand, people are also working longer and longer. In 2024, the Bureau of Labor Statistics reported that nearly 20% of Americans age 65 and older were still employed, a rate that has more than doubled over the past 30 years (2).
Meanwhile, life expectancy is increasing. That means the number of years between retirement and death is increasing. According to the Social Security Administration, the average 65-year-old woman in the US has 20.12 years left to live, while the average 65-year-old man has 17.48 more years left to live (3).
Of course, these are just averages, but one of the biggest risks to any retirement plan is whether your savings will outlive you.
If Jim and Helen live to be ninety, their money has to last almost three decades; That $1.5 million might not be as much as you think.
What’s more, market downturns, higher-than-expected inflation, and rising healthcare costs could erode your purchasing power over time. Medicare eligibility at age 65 should help manage health care expenses, but supplemental insurance and out-of-pocket costs can still be substantial.
So how can you keep your portfolio afloat when the market falters?
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)’
This is where alternative assets can come in. Unlike traditional stocks and bonds, alternative assets can be a powerful hedge against inflation, which can erode the value of your money in the long term.
Gold is not tied to any particular country, currency or economy, and when financial markets become volatile or geopolitical tensions flare, investors often flock to it, driving up prices.
The precious yellow metal also had a historic year in 2025, growing around 60% year over year, reaching highs of over $4,300 per ounce in mid-October (4).
And when you invest in gold with a gold IRA, you can take advantage of significant tax benefits for your retirement. Thor Metals offers a gold IRA that allows investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in gold. This combination can make it an attractive option for those looking to protect their retirement funds against economic uncertainties.
For more information, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases. Just keep in mind that gold is usually just one part of a well-diversified portfolio.
Another inflation-resistant alternative investment you might consider is commercial real estate.
Traditionally, direct access to the $22.5 trillion commercial real estate sector was limited to a select group of elite investors, but that changed with First National Realty Partners (FNRP). FNRP helps accredited investors diversify their portfolio through supermarket-anchored commercial properties, without needing to assume the responsibilities of ownership.
With a minimum investment of $50,000, investors can own a portion of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors can invest in these properties without worrying about tenant costs reducing their potential returns.
Simply answer a few questions, including how much you would like to invest, to start exploring the full list of available properties.
FNRP also has a Self-Directed IRA (SDIRA), which allows you to invest for your retirement through tangible income-producing assets that can offer predictable cash flows and long-term growth. With FNRP, your rental income and investment gains can grow tax-deferred in an SDIRA, maximizing your savings and decreasing your dependence on the public markets.
With $1.5 million saved, Jim and Helen are ahead of many Americans. The average retirement savings for Americans ages 55 to 64 was around $185,000, according to the Federal Reserve (5).
However, financial planners often suggest that by the time you reach age sixty, you should have eight to ten times your annual income saved for retirement. For Jim and Helen, that would equate to savings of between $2.4 million and $3 million, meaning they are well short of their goal even if their cohort is doing well.
There is no single “golden number” for retirement savings because spending habits, health, and lifestyle choices vary. That said, $1.5 million can provide a comfortable retirement for some, especially if at least one spouse continues to earn income and delays withdrawals from savings accounts.
The real question is whether Jim and Helen will be able to maintain their current quality of life in retirement with that amount.
If both Jim and Helen retire this year, they could begin withdrawing funds from their retirement accounts without penalty.
Based on the commonly cited 4% withdrawal rule, a $1.5 million savings could net you about $60,000 a year, before taxes. That’s 80% less than the couple’s current level of annual income.
While it seems unlikely that they will be able to live comfortably on a substantially lower income level, there might be ways to reduce costs to live on somewhat smaller savings.
A quick daily check of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills, and unusual charges when transacting from all of your linked accounts.
This can help you reduce unnecessary costs and you can then manually redirect savings directly to your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders, and budgeting basics, while premium features like automated savings, net worth tracking, customizable dashboards, and more make it easier to stay on top of your retirement contributions and overall financial goals.
The sooner they retire, the more seriously they will have to take their budget.
For example, if they claim Social Security at age 62, the first year Americans are eligible to receive benefits, they would receive about 30% less per month than if they waited until full retirement age, at age 67. They would earn less than half of what they could if they delayed retirement until age 70.
If Helen postpones retirement until age 67, her Social Security benefits could significantly increase her income and she will receive a higher payout for life. Jim could claim his benefit earlier, wait until full retirement age or even until he turns 70 to maximize his payment.
By combining their savings withdrawals, Social Security, and Helen’s continued income over the next six years, they could maintain their current standard of living until they both retire.
But again, this would mainly depend on Helen’s plans and whether she hopes to retire together with her husband.
Before deciding to retire, there are a few things Jim and Helen should consider:
Create a detailed retirement budget that includes healthcare, housing, travel, and discretionary spending.
Work part-time or as consultants to earn additional income, so that Jim and/or Helen can reduce their savings withdrawals in the early years. If Jim finds part-time work, this could give them not only a small financial boost but also a social connection.
Meet with a financial planner to run simulations based on different retirement ages and market conditions.
One option would be to work with Advisor.com to find a financial advisor that fits your goals. All of Advisor.com’s financial experts are pre-vetted fiduciaries, meaning they are legally obligated to act in your best interest.
After entering your zip code to find an advisor near you, you can schedule a free, no-obligation call to make sure it’s the best fit for your needs.
From there, Jim and Helen could review their investment allocation to balance income needs with long-term growth potential.
Retiring at age 61 with $1.5 million and no debt is possible, especially if one spouse continues working for several more years.
However, if Helen and Jim retire at the same time, they may have to change their lifestyle to accommodate their new annual income.
They should remember that the key to retirement success is understanding how long your money should last and what lifestyle you want to maintain. In the case of Jim and Helen, Helen’s continued income could provide a cushion if she decides to continue working. But your decision should be based on careful planning, realistic spending expectations, and an awareness of longevity risk, not to mention a conversation with a financial planner.
With the right strategy, Jim and Helen could transition into retirement with financial security and peace of mind.
We rely only on verified sources and credible third-party reports. For more information, see our editorial guidelines and ethics.
Retirement Research Center (1), Bureau of Labor Statistics (2); Social Security Administration (3); APMEX (4); Federal Reserve (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
