If you’re retiring with $4.2 million, you’re ahead of the game. The average retirement account balance among Americans 65 to 74 was around $609,000 as of 2022, according to Federal Reserve data.
If you use the 4% rule to manage a balance that large, you’re looking at annual withdrawals of $168,000, not accounting for any adjustments you might make for inflation. And that’s on top of whatever Social Security ends up paying you.
