Investment risk

Seniors might need to look closely at their own portfolios, especially if they want to know how long $1 million could last. Investments matter, and if you start doing them in an aggressive fashion, you might put your money at risk for more losses than winnings. However, if you’re being too conservative, your savings won’t be able to grow enough to offset inflation, and that’s not good either.

Inflation

After many years of near-zero inflation, prices went crazy this year. Well, that’s exactly one of those things that retirees should be fully prepared for. A rising inflation rate might ruin the purchasing power of money, resulting in seniors burning through their savings way faster than planned.

All these factors contribute to the universal rule of thumb when it comes to retirement savings. And as it usually goes in every other sector of life, some might be able to live just fine on less than $1 million, while others might need way more than that.