Do You Really Need $750,000 to Retire in 2025?

I've written about retirement planning for years, and here's something I'm seeing more in 2025: The "magic number" people ask about is shifting from $1 million to $750,000.

With higher yields on savings accounts and CDs, but stubbornly high living costs in many places, folks want to know if you can really retire on $750,000 these days.

Why $750,000 feels realistic now

The $1 million target used to be the gold standard, but higher interest rates and market shifts have changed the math. With some high-yield savings accounts still paying around 4.00% APY, and CDs offering 4.00%-4.50% in mid-2025, your cash can work harder for you.

Retirees are also getting smarter about spending flexibly, relocating to lower-cost areas, and using part-time work or hobby income to close gaps. All of this makes a $750,000 nest egg feel more achievable and realistic.

What your lifestyle demands

The biggest factor isn't the size of your portfolio -- it's your spending. If your annual expenses are around $40,000, and you can cover part of that with Social Security, $750,000 can last decades with a 3%-4% annual withdrawal rate.

But if you want to travel extensively, live in a high-cost city, or retire before age 65 (and pay for private health insurance), you'll need to run the numbers carefully.

These decisions can be tough to make, especially if you've never had to think about it before. A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

Don't ignore healthcare costs

Healthcare is one of the biggest wildcards in retirement, even in 2025. Premiums, out-of-pocket costs, and long-term care can take a bite out of your $750,000 nest egg.

If you retire before Medicare eligibility, consider:

• Using an Affordable Care Act (ACA) plan with subsidies, if eligible
• Building a health savings account (HSA) to cover future medical costs
• Factoring in rising healthcare inflation in your budget

Inflation is still a threat

While inflation has come down from its peaks, prices for essentials like housing, insurance, and food remain higher than pre-pandemic levels. Your $750,000 today won't have the same buying power 10-20 years from now if you're not investing wisely.

Keep part of your portfolio in stocks and inflation-protected assets to help your money keep pace.

Your withdrawal strategy matters

Having $750,000 in your account isn't enough -- you need a plan for how you'll use it. Some options:

• Bucket strategy: Keep a few years of living expenses in cash while letting investments grow.
• Flexible withdrawals: Adjust spending in down markets to protect your portfolio.
• Partial annuities: Lock in a portion of your spending needs if you want guaranteed income.

You don't have to go at this alone either. This no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.

It's not just about the number

Retirement in 2025 isn't about chasing a perfect target -- it's about aligning your savings, income streams, and lifestyle.

If you want to see if $750,000 is enough for you:

1. Track your current spending and estimate your future needs.
2. Check your Social Security estimates and other income streams.
3. Factor in healthcare and inflation.
4. Consider using a fee-only financial planner for a clear, personal plan.

Here's your next step

You don't need to feel stuck waiting to hit $1 million if your lifestyle doesn't demand it. With a solid plan, flexible spending, and smart investing, $750,000 can absolutely be enough to retire comfortably in 2025.

If you're not sure where to start, review your savings strategy, see how your money is working for you, and consider boosting your cash yields with a high-yield savings account. The earlier you run the numbers, the clearer your path to a confident retirement becomes.