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When it comes to planning for retirement, evaluating your nest egg is a big part of the process. The state of your retirement savings can heavily influence when you decide to retire.
Take Hector, 62, for example. He worked in corporate America for most of his career, but after he was laid off, he wondered if it might be time to take a step back.
Before his layoff, he and his wife, Juana, were doing very well, financially speaking. They made a combined $300,000 a year and carry no debt. The couple has also managed to put together a combined $1.3 million in savings.
While Hector would like to retire now, the decision hinges on several factors, including when Juana plans to retire, how much they need to live comfortably, how long their savings will last and the roles Social Security and Medicare will play in their plan.
To figure it all out, let’s get into the numbers.
When considering these questions, it’s worth starting out by remembering that the retirement landscape has changed dramatically in America since the turn of the 21st century.
According to the Center for Retirement Research at Boston College, for example, the average retirement age is now about three years later than it was in the 1990s (1).
On the other hand, Americans are also increasingly working longer. In 2024, the U.S. Bureau of Labor Statistics reported nearly 20% of Americans ages 65 and older were still employed — a rate that has nearly doubled over the past 30 years (2).
Meanwhile, life expectancy is increasing. That means the number of years between retirement and death is growing, making retirements longer. According to the Social Security Administration, the average 65-year-old woman in the U.S. has 20.12 years left to live, while the average 65-year-old man has 17.48 more years (3).
Of course, these are just averages, but one of the biggest risks to any retirement plan is outliving your savings.
Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late to catch up?
Hector and Juana might not be so worried about outliving their retirement savings because they have already hit an important — if arbitrary — retirement goal.
They have saved the “magic number” for retirement in the minds of average Americans, according to a 2025 survey by Northwestern Mutual: Respondents said they think they’ll need $1.26 million to retire comfortably (4).
While very few of us have enough saved, this couple has reached the mark where many of their fellow Americans would feel comfortable hanging up their tools.
At the same time, if Hector and Juana live into their nineties, their money has to last nearly three decades — that $1.3 million might not be as much as you think.
What’s more, market downturns, higher-than-expected inflation and rising health care costs could erode their purchasing power over time. Medicare eligibility at 65 should help manage health care expenses, but supplemental insurance and out-of-pocket costs can still be substantial.
So, how do you keep your portfolio above water when the market wavers?
This is where alternative assets can step in. Unlike traditional stocks and bonds, alternative assets can be a powerful hedge against inflation — which can erode the value of your money over the long term.
For example, gold isn’t tied to any single country, currency or economy, and when financial markets turn volatile or geopolitical tensions flare, investors often flock to it — driving prices higher.
The precious yellow metal also had a historic year in 2025, ultimately hitting a high price of $5,589.38 per ounce at the end of January before retreating somewhat (5).
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 hedge their retirement funds against economic uncertainties.
To learn more, 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 typically just one part of a well-diversified portfolio.
Another alternative asset is real estate.
Of course, many would-be retirees are counting on selling their family home to shore up their retirement savings. In fact, a 2023 study from Vanguard found that approximately 80% of Americans over 60 years owned their own homes, and these properties accounted for 48% of their median net worth (6).
At the time of the study, homeowners who sold out in retirement were unlocking an average of $100,000 in home equity by selling and relocating — but the housing market isn’t the same in 2026 as it was in 2023.
With demand waning in several major markets, however, you may have to look beyond your own backyard for real estate opportunities these days.
But now you can tap into the vacation homes or rental properties market through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
Another inflation-resistant alternative investment you could consider is commercial real estate.
If diversifying into multifamily and industrial rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.
And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multi-stage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.
How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.
Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.6% historical net IRR and 2.54x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.
As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.
Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.
Returning to our couple, Hector and Juana are still ahead of many Americans, with their $1.3 million in savings.
The median retirement savings for Americans between 55 and 64 years was around just $185,000 in 2022, according to the Federal Reserve (7).
However, financial planners often suggest that by the time you reach your early sixties, you should have between 8 and 10 times your annual income saved for retirement.
For Hector and Juana, that would equate to a nest egg between $2.4 million and $3 million, meaning they’re arguably far below target even if they’re doing well for their cohort.
But that points to a bigger issue: There is no single “golden number” for retirement savings, because spending habits, health and lifestyle choices vary.
That said, $1.3 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 Hector and Juana can maintain their current quality of life in retirement with that amount.
The answer to that question is that there is no single “golden number” for retirement savings, because spending habits, health and lifestyle choices vary.
That said, $1.3 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 Hector and Juana can maintain their current quality of life in retirement with that amount.
If both Hector and Juana retire this year, they could begin drawing from their retirement accounts without penalty.
Based on the commonly cited 4% withdrawal rule, a $1.3 million nest egg could give them just over $50,000 annually, before taxes. That’s over 80% less than the couple’s current level of annual income.
This means that they would have to change their spending habits drastically.
While it seems unlikely they would be able to comfortably live at a substantially lower level of income, there might be ways they can cut costs to live on a somewhat smaller nest egg.
A quick daily check-in 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 by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into 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.
By now, it should be clear for Hector and Juana that the earlier they retire, the more seriously they’ll need to take their budgeting.
For instance, if they claim Social Security at 62, the first year Americans are eligible for benefits, they would receive about 30% less per month than if they wait until full retirement age, at 67.
They would also earn less than half of what they could get if they delayed retirement until 70.
And so, if Juana puts off her retirement until 67, her Social Security benefits could significantly boost their income, and she will receive a higher payout for life. Meanwhile, Hector could claim his benefit earlier and wait until full retirement age, or even until he’s 70, to maximize his payout.
Following this plan, the couple could combine withdrawals from their savings, Social Security and Juana’s continued earnings for the next six years — and maintain their current standard of living until both are retired.
But, again, this would depend primarily on Juana’s plans and whether she’s hoping to retire alongside her husband.
Before deciding to retire, there are a few other things that Hector and Juana should consider:
Creating a detailed retirement budget that includes health care, housing, travel and discretionary spending.
Working part-time or as consultants for extra income, so that they can reduce their withdrawals from savings in the early years. If Hector finds part-time work, this could give him not only a small financial bump but also a social connection.
Meeting with a financial advisor or planner to run simulations based on different retirement ages and market conditions could be a great step for the couple.
These are all good options, but if working with a financial advisor seems like the best one for Hector and Juana, they could consider using Advisor.com to find a financial advisor that suits their goals.
All of Advisor.com’s financial experts are pre-vetted fiduciaries, meaning they have a legal obligation to act in their — and your — best interest.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best-suited for your needs based on your unique financial goals and preferences.
From there, you can set up a free call with no obligation to hire, so you can make sure they’re the right fit for your needs.
Retiring at 62 with $1.3 million and no debt is possible, especially with one spouse continuing to work for several more years.
However, if both retire at the same time, they may need to change their lifestyle to adapt to their new annual income.
Ultimately, they should remember that the key to retirement success is understanding how long their money needs to last, and what lifestyle they want to maintain.
In this couple’s case, Juana’s continued income could provide a cushion if she decides to keep working. But her decision should be grounded in careful planning, realistic spending expectations and an awareness of longevity risk — not to mention a conversation with a financial planner.
With the right strategy, Hector and Juana could transition into retirement with both financial security and peace of mind.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Center for Retirement Research at Boston College (1); U.S. Bureau of Labor Statistics (2); Social Security Administration (3); Northwestern Mutual (4); CBS News (5); Vanguard (6); Board of Governors of the Federal Reserve System (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.