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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 instance, could make that possible, covering everyday expenses while still allowing for travel, dining out and other luxuries.
But reaching that level of income in retirement requires more than just a large nest egg. Your savings must also be resilient enough to handle inflation, market swings and the risk of outliving your money.
The financial bar for this kind of retirement is likely higher than most people expect. Here’s why.
Retiring on $144,000 isn’t typical. 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 aligns closely with the median retirement income of $54,710 for Americans over 65, based on 2023 U.S. Census Bureau data (2).
By contrast, aiming for $12,000 per month in retirement income means targeting nearly three times the income of the average retiree. To support that level of spending using the 4% rule, you’d need around $3.6 million in retirement savings.
That’s already a steep target, but it only scratches the surface. Once you factor in inflation and longevity risk, the bar climbs even higher.
If you’re hoping to achieve three times the average retirement income, you may benefit from working with an advisor. People who work with financial advisors see a 3% increase in net returns, according to a report from Vanguard.
The advisors at Range offer white-glove financial services to high-income households.
Once your equity enters this ballpark, one of the most significant financial pain points can be asset under management (AUM) fees. These fees mean that portfolio managers take a percentage of the value, typically between 0.5% and 2%, of your managed assets — so as your wealth grows, so do their fees.
Range offers 0% AUM fees for advisory services and a flat-fee structure so that you can preserve more of your wealth. They also provide an all-in-one solution for everything from alternative asset management to taxes — meaning all your financial needs are covered.
Book a complimentary demo today to see if Range is the right fit for you.
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 erode purchasing power over time. For example, if you retire at 62 and live to 82, a 2% annual inflation rate would significantly reduce what your retirement income can buy.
To maintain the same standard of living as $144,000 in your first year of retirement, you’d need about $214,000 per year by age 82.
Your ability to manage this issue depends heavily on your investment strategy. If you rely primarily on low-risk assets like bonds or Treasury securities, you may need well over $3.6 million to keep up with inflation.
Alternatively, you might invest in inflation-sensitive assets like stocks, real estate, or gold. Many retirees do. According to Empower, the average American in their 60s or 70s holds nearly half their portfolio in equities (3).
While these assets offer higher long-term growth potential, they’re also more volatile, which makes consistent withdrawals more difficult.
The price of gold has made headlines around the world this year, as investors worried about a rocky stock market put their faith in the inflation-hedging asset.
With the commodity recently trading at $4,185 per ounce, gold has proven to be a resilient and profitable investment for those looking for stability in retirement.
If you’re 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 up to five years. Qualifying purchases also receive up to $10,000 in free silver.
Plus, Priority Gold allows you to convert an existing IRA into a gold IRA, with 100% free rollover.
To learn more about how Priority Gold can help you boost your nest egg, download their free 2025 gold investor bundle.
Whether you already own property or not, a robust real estate portfolio can help you reach hefty retirement income goals faster. But many soon-to-be retirees would prefer to avoid the stresses of being a landlord in retirement.
Real estate platform Mogul offers fractional ownership in blue-chip rental properties, providing investors with monthly rental income, real-time appreciation and tax benefits minus the responsibilities that come with being a landlord.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings without a massive down payment. Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios.
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 just a few clicks.
If you’d like to get in on the vacation property market, Arrived allows you to invest in shares of rental homes 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 find a property you like, just choose the number of shares you want to buy.
You can start investing in 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 mirrors 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 likely a starting point if you aim to sustain 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 ensure you understand today’s markets. Financial literacy is key for everyone, but those who want to reach $144,000 a year in retirement will need to go deeper than the average person to attain such a high income level.
Investment advice tools like Moby can help take some of the guesswork out of selecting stocks and ETFs. Over four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by nearly 12%, on average.
With their easy-to-understand formats, you can become a wiser 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 today for a 7-day free trial.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Northwestern Mutual (1); U.S. Census Bureau (2); Empower (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.