I remember quite clearly almost 35 years ago, when I was still an undergrad, people were aiming to save $1,000,000 and then they will retire. In 1982, $1,000,000 was a princely sum. Very few people had that kind of money. And why not, fresh graduates then were only earning $1,300 to $1,600 a month or thereabout.

Now, in 2017, when you tell people you aim to retire with $1,000,000 you risked being laughed at and ridiculed. And rightly so. Even with a very basic lifestyle of just $3,000 a month or $36,000 a year, with 3% inflation, your $1,000,000 will only last 25 years. And that $1,000,000 better not include the value of your property!

Nowadays, 35 years later, I am hearing more and more people aiming for above $3,000,000 (not including their property) before they are confident of a good and worry free retirement while living a $7,000 a month lifestyle.

With $3,000,000 invested at a conservative 4% return, that would provide $120,000 pa. And with 3% inflation, and a $7,000 a month lifestyle, the $3,000,000 will last about 35 years!

It is understandable why people want to build up more wealth before they consider retirement. Its about wanting a worry free retirement where you should living life and not having to count every cent you spent, and getting stressed and being jealous about others.