Households with retirement savings between $1 million and $4 million cluster in the same $70K-$120K annual spending range, studies find.
Retirees with portfolios ranging from $1.2 million to $4 million exhibit nearly identical annual spending patterns, according to data from JPMorgan, Morningstar, and the Federal Reserve. The majority of households in this bracket spend between $70,000 and $120,000 per year, regardless of whether their savings exceed $3 million or hover closer to $1 million.
The trend persists across multiple data sources, including the Fed’s Survey of Consumer Finances and Boldin’s retirement planning platform. Median retirement income rises only $16,000 between the $1 million and $5 million-plus tiers, suggesting wealth accumulation has limited impact on spending volume. Instead, wealthier retirees tend to upgrade the quality of expenditures rather than increase total outlays.
This convergence challenges assumptions about retirement spending scaling with portfolio size. The findings indicate time and lifestyle constraints may cap spending growth even as savings grow.