'$2 Million Is Pennies' — Suze Orman Says If You Think You'll Be Able To Survive On $80,000 A Year In Retirement, 'I've Got A Bridge To Sell You'

What's your magic number for retirement? A million? Two million? Maybe you've run the numbers and think $80,000 a year will be plenty to live comfortably in your golden years.

Suze Orman is here to tell you—you're wrong.

"Two million is nothing. It's nothing. It's pennies in today's world, to tell you the truth," she said bluntly during a 2018 interview on the "Afford Anything podcast." And for those who think they can make it on $80,000 a year in retirement, she didn't hold back. "I promise you…if you think $80,000 a year as you get older is going to make it for you before taxes, I have a bridge to sell you."

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Why Orman Thinks $2 Million Won't Cut It

At first glance, $2 million sounds like a massive nest egg. After all, a 4% withdrawal rate—often cited as a safe benchmark—would give you $80,000 a year. But Orman sees that logic as dangerously naive.

"Let's say you need help," she explained. "Remember, I took care of my mother and it cost me $30,000 a month. So you're talking about very possibly $300,000, $400,000 a year." And that's just one expense. Add in taxes, inflation, market downturns, and unexpected emergencies, and suddenly, that $2 million doesn't stretch as far as you'd hoped.

Orman believes retirees are vastly underestimating just how expensive things will get. "Do not be surprised if by the year 2030, there's a 25% unemployment rate," she predicted, citing artificial intelligence and automation as major disruptors. "There will not be the money there for Social Security."

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What the Numbers Really Say

According to the Federal Reserve's Survey of Consumer Finances, only 3.2% of retirees have even $1 million saved—let alone $2 million. Those with $2 million or more? They make up an even smaller sliver of the population.

But is Orman right that $80,000 a year won't be enough?

The Bureau of Labor Statistics reports that as of 2023, retirees aged 65 and older spent an average of $60,087 per year. On paper, that might suggest $80,000 could work. But that number doesn't account for rising healthcare costs, unexpected emergencies, or future tax increases—all of which Orman warns could quickly drain savings faster than people expect.

The FIRE Movement? Orman ‘Hates It'

Orman's skepticism extends to the Financial Independence, Retire Early movement, which promotes aggressive saving to retire in one's 30s or 40s. She called it "the biggest mistake financially speaking, you will ever, ever make in your lifetime."

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Her reasoning? Retiring early cuts off compounding growth—one of the most powerful tools for wealth building. "If you wait until you're 35 to start investing, those ten years will cost you $700,000," she warned.

And even if a FIRE retiree pulls in $80,000 a year from their investments, Orman sees major risks. "Your portfolio can go down. Your dividends can be cut. Taxes will go up. What happens when you need a new roof? A new car? If you think you can predict all of life's expenses at 35, good luck."

She's heard the regret stories firsthand. "I have seen people retire at 50, at 55, and then they call me back at 70 and they go, ‘Why did you let me do that?'"

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Keep Working, Keep Saving

No matter what your retirement goal is, money doesn't stretch as far as it used to. Adjusted for inflation, that same $2 million Orman called "pennies" in 2018 would need to be at least $2.5 million in 2025 just to have the same buying power. 

Whether you're aiming for $2 million, $5 million, or more, it's crucial to consult a financial advisor to ensure your savings, investments, and income streams will actually last. Because in retirement, the last thing you want is to find out too late that your "comfortable" number wasn't nearly enough.

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