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For many Americans, retirement isn’t just about getting by—it’s about living comfortably and maintaining a middle-class lifestyle.
Earning $12,000 per month ($144,000 a year) in passive income, for example, can make it possible to cover everyday expenses, allowing for travel, dining out and other luxuries.
But reaching that level of income in retirement requires only a large nest egg. Your savings should be flexible enough to handle inflation, market swings and risk out of your money.
The financial bar for this type of retirement is probably higher than most people expect. Here is the reason.
Retiring on $144,000 is not uncommon. In 2025, the “magic number” for retirement savings is $1.26 million, according to a Northwestern Mutual study (1). Using the standard 4% rule, that equates to about $50,400 per year – or $4,200 per month in retirement income.
That figure is close to the median retirement income of $54,710 for Americans over 65, based on 2023 U.S. Census Bureau data (2).
In contrast, aiming for $12,000 per month in retirement income means aiming for approx. three times Income of the average retiree. To support that level of spending using the 4% rule, you’d need about $3.6 million in retirement savings.
That’s already a lofty goal, but it only scratches the surface. Once you factor in inflation and longevity risk, the bar climbs even higher.
If you’re hoping to triple the average retirement income, you may benefit from working with an advisor. According to Vanguard’s report, individuals who work with financial advisors see a 3% increase in net returns.
Range Advisors offers white-glove financial services to high-income families.
Once your equity enters this ballpark, one of the most significant financial pain points can be assets under management (AUM) fees. These fees mean portfolio managers take a percentage of the value of your managed assets, usually between 0.5% and 2% — so as your assets grow, so do their fees.
The range offers 0% AUM fees for advisory services and a flat-fee structure so you can protect more of your assets. They offer an all-in-one solution for everything from alternative asset management to taxes – meaning all your financial needs are covered.
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Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich).
Even modest inflation can reduce purchasing power over time. For example, if you retire at 62 and live to 82, a 2% annual inflation rate will reduce what your retirement income can buy.
To maintain the same standard of living of $144,000 in your first year of retirement, you’ll need about $214,000 per year at age 82.
Your ability to manage this problem depends a lot on your investment strategy. If you rely primarily on low-risk assets such as bonds or Treasury securities, you’ll need more than $3.6 million to keep up with inflation.
Alternatively, you can invest in inflation-sensitive assets such as stocks, real estate, or gold. Many retirees do. According to Empower, the average American in their 60s or 70s held about half their portfolio in equities (3).
While these assets offer higher long-term growth potential, they are also more volatile, making continued withdrawals more difficult.
Gold prices have made headlines around the world this year, as investors worried about rocky stock markets put their faith in the inflation-hedging asset.
With the commodity recently trading at $4,185 per ounce, gold has proven to be a flexible and profitable investment for those seeking stability in retirement.
If you are interested in investing in gold, Priority Gold can help. Offering physical delivery of gold and silver, their A+ rating from the Better Business Bureau and 5-star rating from Trust Link can help you feel confident in your precious metal investments.
Priority Gold also offers free shipping and free storage for five years. Eligible purchases also receive up to $10,000 in free silver.
Plus, Priority Gold allows you to convert an existing IRA to a gold IRA, with a 100% free rollover.
To learn more about how Priority Gold can help you grow your nest egg, download their free 2025 Gold Investor Bundle.
Whether you already own property or not, a strong real estate portfolio can help you reach big retirement income goals faster. But many early retirees prefer to avoid the stress of homeownership in retirement.
Real estate platform Mogul offers fractional ownership in blue-chip rental properties, providing investors with monthly rental income, real-time valuations and tax benefits that come with the responsibilities of being a homeowner.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings without a huge down payment. Each property goes through a vetting process, requiring a minimum 12% return.
Sign up for an account today to browse available properties. Once you verify your information with their team, you can invest like a mogul in a few clicks.
If you want to get into the vacation property market, Arrived allows you to invest in rental homes and vacation rental shares without the responsibility of property management.
Backed by world-class investors like Jeff Bezos, Arrived lets you browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, simply choose the number of shares you want to buy.
You can start investing today with just $100.
Bill Benzen, creator of the 4% rule, called inflation “the greatest enemy of retirees.” In a CNBC interview, he recommended adjusting your withdrawal rate annually to account for inflation instead of sticking to a fixed percentage (4). It reflects how Social Security benefits are adjusted to maintain purchasing power (5).
Ultimately, your ability to generate $12,000 a month in retirement depends on several factors:
That said, $3.6 million is probably a starting point if you aim to maintain a high standard of living for more than 20 years in retirement.
One of the best ways to build a millionaire lifestyle in retirement is to make sure you understand today’s markets. Financial literacy is key for everyone, but those who want to reach $144,000 a year in retirement have to dig deeper than the average person to achieve such a high income level.
Investment advice tools like Mobi can help take some of the guesswork out of choosing stocks and ETFs. Over four years, across nearly 400 stock picks, Moby’s recommendations beat the S&P 500 by about 12% on average.
With their easy-to-understand formats, you can become a smart investor in just five minutes, all with their 30-day money back guarantee.
Plus, you can get the full Moby experience for $0 when you sign up for a free 7-day trial today.
We rely only on vetted sources and reliable third-party reporting. For details, see our editorial ethics and guidelines.
Northwestern Mutual (1); US Census Bureau (2); Empowerment (3); CNBC (4); social security (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
