Suze Orman Says You'll Likely Spend $350K a Year in Retirement — So Save Millions: 'You Don't Know How Long You're Gonna Live'

Retiring with a couple of million dollars sounds like a dream—until reality or a bus hits. Financial guru Suze Orman spoke on the "Afford Anything" podcast back in 2018 and instead of celebrating the idea of retiring in your 30s or 40s, she laid out a much harsher reality: most people are wildly underestimating how much they'll actually need.

Life Can Get Expensive

Orman wasn't just talking about standard retirement costs—she was talking about what happens when life throws something really expensive at you.

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"Everything was going great for somebody and then, you know, they were in an accident. They were riding a horse. They got thrown off. They were in a car, and a pole goes through the front of the car, off of a truck in front of them, and totally paralyzes them. They get hit by a bus walking down the street of New York, and on, and on and on."

Her point? Life happens. And if you suddenly find yourself unable to work, you better hope you have enough money to survive without ever earning another paycheck.

So How Much Is Enough?

Podcast host Paula Pant asked Orman what a "safe" retirement number looks like. Orman didn't hesitate: "It would have to be in the millions."

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When pressed for a specific number, she explained that expenses add up fast—especially when you factor in healthcare.

"Let's say you need help, and everything. Remember I took care of my mother and it cost me, like I said, it was $30,000 a month. $30,000 a month. So you're talking about maybe $300,000, $400,000 a year."

She corrected her math, adjusting the estimate to a quarter of a million dollars—just for medical costs. Then she factored in food, housing, and other essentials, pushing the total even higher.

"Let's just say you need another $100,000 a year to live, because of other things that you need. So now you need $350,000 a year after taxes."

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Here's where the math really starts to hurt:

• A $1 million retirement fund earning 4% a year? That only gives you $40,000 annually—not even close.
• To generate $350,000 a year, Orman estimates you'd need at least $10 million invested at a 5% return—after taxes.

Inflation has been brutal over the last six years. In 2018, $350,000 a year already sounded steep so what would she say now? $12 million? $15 million?

"You Don't Know How Long You're Gonna Live"

This was Orman's biggest argument against early retirement and the idea that a couple of million dollars is "enough." She warned that people underestimate just how long retirement can last and how quickly their savings can disappear.

"Because you don't know how long you're gonna live, and because you've done it when you're so young," she explained. "Now you have all this money. If you start spending $350,000, $1 million a year, in not that many years, all your money's gone."

She emphasizes retirement isn't just about having "enough" for today—it's about having enough for decades. A person retiring in their 30s or 40s could be looking at 50 years of expenses, market downturns, and unexpected costs. If you withdraw too much too soon, you could run out of money long before you run out of time.

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How Much Is Enough? That Depends on You

Orman's take is one way to look at it, but it's not the only way. Not everyone needs $350,000 a year in retirement—just like some people live comfortably on six figures while others thrive on $40,000. It all comes down to lifestyle, location, and how much of a safety net makes you sleep at night.

While Orman leans ultra-cautious, that doesn't mean you must have $10 million to retire. Some people make early retirement work on much less by keeping expenses low, living in affordable areas, or having other income streams. The key is knowing your own financial needs, planning realistically, and consulting an advisor if you need help figuring out what's right for you.

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