A $1 million nest egg has long been considered the benchmark for a secure retirement.
Sadly, these days, it's only a fraction of what you will really need.
For instance, a 67-year-old baby boomer retiring now with $1 million in the bank will generate $40,000 to live on in the first year, adjusted for inflation and assuming a sustainable withdrawal rate of 4 percent, said Mark Avallone, president of Potomac Wealth Advisors and author of "Countdown to Financial Freedom." (In subsequent years, portfolio gains and losses could affect those numbers.)
It's even worse for a 42-year-old Gen Xer, whose $1 million at retirement will only generate an inflation-adjusted $19,000 in year one after all is said and done. And a 32-year-old millennial planning to retire at 67 with $1 million would be below the poverty line.
That's what Avallone, a certified financial planner, calls "million-dollar poverty."