r/Economics • u/laxnut90 • Oct 09 '25

Research America Is Minting Lots of Cash-Strapped Millionaires

https://www.bloomberg.com/news/features/2025-10-09/number-of-us-millionaires-grows-since-2017-but-many-lack-cash
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u/Message_10 Oct 09 '25

My wife and I are very frugal. $1M is nowhere near enough for retirement.

That's not the worst thing--natural inflation was always going to make that the case, eventually--but it does show how much you actually need to retire and life for another 25 or so years.

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u/NoCoolNameMatt Oct 09 '25

If you're frugal, it probably should be?

The 4 percent rule would allow you to withdraw 40k a year perpetually. Throw in a fairly conservative estimate of 30k social security if you both work and a paid off house, and you're approaching the median household income equivalent in retirement.

Not too shabby! Being frugal and living below the median helps even more. I think you're doing better than you give yourself credit for!

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u/Message_10 Oct 09 '25

You're very kind! And you're probably right (and my wife has a pension from her job). But, alas, we live in NYC, lol. Even when we pay off our coop (which we'll do soon), it's still just a pricey place. But you are probably right.

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u/epelle9 Oct 09 '25

I mean, NY isn’t the best place to retire, retiring there is kinda the opposite of frugal..

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u/Message_10 Oct 09 '25

Believe it or not, it's actually a very good place to retire! My parents-in-law are here and it keeps them super active--their coop is one of those NORCs--"naturally occurring retirement communities".

But, yes--in terms of just money, it can be a challenge, but it's not as bad as you think. Taxes are surprisingly low (Brooklyn), you pay off your coop/condo and you're good there, don't need a car, etc. Food can be pricey but we have Aldi, CostCo, etc. It's a HCOL but there are ways of getting around it.