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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 a month ($144,000 a year) in passive income, for example, could make this possible, covering day-to-day expenses while allowing for travel, dining out and other luxuries.
But reaching this level of retirement income takes more than a large nest egg. Your savings also need to be resilient enough to withstand inflation, market fluctuations and the risk of outliving your money.
The financial bar for this type of retirement is probably higher than most people expect. Here’s why.
Withdrawing $144,000 is not common. 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 a year — or $4,200 a month in retirement income.
This figure closely aligns with the median retirement income of $54,710 for Americans over 65, based on 2023 US Census Bureau data (2).
Conversely, aiming for $12,000 per month in retirement income is aiming close three times the income of the average pensioner. To support this level of spending using the 4% rule, you would need about $3.6 million in retirement savings.
This is already a steep target, but it only scratches the surface. Once you factor in inflation and longevity risk, the bar rises even higher.
If you’re hoping to earn three times the average retirement income, you may benefit from working with an advisor. People who work with financial advisors see a 3 percent increase in net returns, according to a report from Vanguard.
Range advisors provide white-glove financial services to high-income households.
Once equity enters this stage, one of the most significant financial sticking points can be assets under management (AUM) fees. These fees mean portfolio managers take a percentage of the value, usually between 0.5% and 2%, of your assets under management – so as your wealth grows, so do their fees.
The range offers 0% AUM advisory fees and a fixed fee structure so you can keep more of your wealth. It also offers an all-in-one solution 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.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
Even modest inflation can erode purchasing power over time. For example, if you retire at 62 and live to be 82, an annual inflation rate of 2% would significantly reduce what your retirement income can buy.
To maintain the same standard of living on $144,000 in the first year of retirement, you’ll need about $214,000 per year until age 82.
Your ability to manage this problem depends largely on your investment strategy. If you rely primarily on low-risk assets such as bonds or Treasuries, you may need well over $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 holds almost half of their portfolio in stocks (3).
While these assets offer greater long-term growth potential, they are also more volatile, making consistent withdrawals more difficult.
The price of gold has made headlines around the world this year as investors worried about a rocky stock market have put their faith in the inflation-hedging asset.
With the commodity recently trading at $4,185 an ounce, gold has proven to be a resilient and profitable investment for those seeking retirement stability.
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 metals investments.
Priority Gold also offers free shipping and free storage for up to five years. Eligible purchases also receive up to $10,000 in free silver.
Plus, Priority Gold lets you convert an existing IRA to a Gold IRA with 100% free rollover.
To learn more about how Priority Gold can help boost your nest egg, download their free 2025 Gold Investor Pack.
Whether you already own property or not, a robust real estate portfolio can help you reach important retirement income goals faster. But many future retirees would prefer to avoid the stress of homeownership in retirement.
The Mogul real estate platform offers fractional ownership in prime rental properties, offering investors monthly rental income, real-time appreciation and tax benefits, minus the responsibilities that come with being an owner.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes across the country for you. Simply put, you can invest in institutional quality deals without a massive down payment. Each property is subject to a vetting process, which requires a minimum return of 12% even in downside scenarios.
Create an account today to search available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
If you’re looking to get into the vacation property market, Arrived allows you to invest in rental home shares and vacation rentals 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 their appreciation and income potential. Once you’ve found a property you like, just choose the number of shares you want to buy.
You can start investing today with just $100.
Bill Bengen, the 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 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 generate $12,000 per month in retirement depends on several factors:
That said, $3.6 million is probably a starting point if you want 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 essential for everyone, but those who want to reach $144,000 a year in retirement will have to go further than the average person to reach such a high level of income.
Investment advisory tools like Moby can help take some of the guesswork out of selecting stocks and ETFs. Over four years, across nearly 400 stocks, Moby’s recommendations have outperformed the S&P 500 by nearly 12%, on average.
With their easy-to-understand formats, you can become a smarter 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 7-day free trial today.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
Northwestern Mutual (1); US Census Bureau (2); Power of attorney (3); CNBC (4); social security (5)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
