Think $600K isn’t enough to retire? Here’s how your nest egg could actually keep growing after you stop working

Many Americans believe they need to be millionaires to retire comfortably. As of 2025, the ideal retirement amount stood at $1.46 million, up $200,000 from $1.26 million in 2025, according to Northwestern Mutual's 2026 Planning & Progress Study. Nearly half (48%) of respondents also worried they might outlive their savings (1). What if you're nearing retirement with less than half that amount, say, $600,000?

Retiring with $600,000 could still allow your nest egg to grow after you stop working, depending on various factors. These include the income you receive from Social Security and other sources, the amount you withdraw, and the performance of your investments.

Research indicates that many retirees are hesitant to spend their savings. According to a 2025 study by David Blanchett and Michael Finke in Financial Planning Review, 65-year-old couples with retirement assets of $100,000 or more withdraw only 2.1% annually. For unmarried retirees in the same category, the withdrawal rate is lower at approximately 1.9% (2). This is significantly lower than the commonly used 4% rule (3).

Retirement expenses can change after you stop working. You may no longer have commuting costs, work attire, or daily office meals. Once you turn 65, Medicare can cover a portion of your healthcare costs. However, housing, medical care, and long-term care can still consume a significant portion of your budget. Therefore, the amount you expect to spend is more crucial than any national rule of thumb.

Determining your retirement spending isn't always straightforward. Your savings, Social Security income, investments, taxes, and expected expenses all play a role. A financial advisor can help you calculate these numbers and create a retirement plan tailored to your situation. However, finding a trustworthy advisor is essential.

Advisor.com is a platform that connects you with a qualified expert near you for free. The platform vets advisors based on their track record, client ratios, and regulatory background, ensuring you work with reliable professionals (4).