What Retirement Looks Like for Today’s Millionaires

Today’s millionaires view retirement differently than those of past generations. For many affluent retirees, retiring is no longer about leaving the workforce to live a quiet life on a fixed income. Instead, today’s retirees are increasingly searching for ways to remain active, continue working in some capacity and continue growing their wealth so that they can maintain their preferred retirement lifestyle for decades.

What’s Changed for Millionaire Retirees?

Changes in the retirement landscape over the past few decades have reshaped the typical retirement plan. Longer life expectancies, rising healthcare costs, a desire (or need) to continue working and a shift from pensions to 401(k)s have all worked together to change many retirees’ perception of financial security in retirement.

For many people who have reached millionaire status, today’s environment requires a more intentional approach to retirement planning. It’s no longer enough to assume a fixed nest egg will carry you through a short retirement; the focus has shifted to sustaining substantial retirement savings over a much longer period of time.

A Focus on Longevity and Asset Sustainability

According to Macrotrends, when the Social Security Act was established in 1953, the average American life expectancy at birth was 68.7 years. At that time, full retirement age was set at age 65, meaning many retirees only expected to spend a relatively short period in retirement. Those who retired at age 65 in 1953 were born in 1888, when the average U.S. life expectancy at birth was closer to 40 to 45 years, based on research from the University of Oregon.

The Social Security Administration reports that men who reached age 65 in the early 1950s could expect to live another 13.1 years, while women could expect to live another 16.2 years. Yet, the Bureau of Labor Statistics notes that the average retirement age for men in the early 1950s was 68.7, which means that the average man who lived into his 60s continued working past his expected lifespan.

In contrast, today’s Centers of Disease Control and Prevention (CDC) data shows average U.S. life expectancy at birth is 75.8 years for men and 81.1 years for women. U.S. News & World Report estimates that the current average retirement age is about 62. This means American retirees, including millionaires, are often facing 20 to 30 years (or more) of post-career life than past generations.

While this is great news for many who look forward to a long retirement, it also means retirees today must carefully plan to establish a retirement income stream that can support their desired lifestyle over several decades. Even millionaire retirees are choosing to work part-time, delay large purchases or adjust spending so that their retirement savings, investment income and potential Social Security benefits can go further.

A Greater Responsibility to Save

Over the last few decades, employers have shifted from providing defined benefit plans, commonly known as pensions, to defined contribution plans, such as 401(k)s and 403(b)s. This change represents a major shift in who bears responsibility for retirement savings.

Previous generations often had access to pension payments that provided a guaranteed monthly income in retirement, based on years of service and salary. This predictable income source made it easier to feel confident about retirement income.

In contrast, defined contribution plans require employees to make contributions from their paychecks to fund their future retirement expenses, with investment and longevity risks largely borne by the individual. While many employers offer matching contributions, the main responsibility for building a substantial retirement savings balance falls on the employee.

Rather than knowing they have a secure, guaranteed retirement income source, even millionaires must take steps to ensure they have enough accumulated in their retirement accounts and investment portfolios to support their preferred lifestyle throughout retirement. As a result, retirement planning for millionaires now often includes:

• Higher ongoing saving rates during working years
• Additional focus on tax-efficient investment strategies
• More deliberate planning around retirement income withdrawals and required minimum distributions

The Emotional Side of Retirement for Today’s Millionaires

While the financial landscape has changed dramatically, the emotional landscape of retirement has shifted just as much. Many millionaires today carry concerns that go far beyond market performance or account balances. They want confidence that the lifestyle they’ve worked hard to build can truly last through a retirement that may span three decades or more. At the same time, many feel a growing responsibility to support adult children — whether through education, housing or early inheritance — without compromising their own long‑term security.

Legacy also plays a central role in retirement planning. Retirees often want to leave more than financial assets; they want to pass down values, opportunities and a sense of stability to future generations. And beneath these aspirations is a very human worry about becoming a burden later in life, especially as healthcare and long‑term care needs rise with age. These emotional considerations make retirement planning not merely a financial exercise but also a deeply personal one that requires clarity, intention and thoughtful guidance.

A “No-Retirement” Approach

In contrast to previous generations, a growing share of older Americans plan to keep working. Fast Company reports that nearly 51% of Americans between ages 65 and 99 say they intend to continue working throughout their retirement years. Newsweek notes that the percentage of Americans aged 65 and older in the workforce grew by about 33% from 2015 to 2024.

This “no-retirement” or “unretirement” approach applies to millionaires as well. According to 401(k) Specialist, only 36% of Americans with more than $1 million in investable assets consider themselves “wealthy,” which helps explain why many remain cautious about fully stepping away from work. However, even those who feel financially secure are choosing to continue working for reasons beyond money. Fast Company’s survey found that 68% say working gives them purpose and 55% say having a job makes them feel valued in society.

For many people, the ideal millionaire retirement lifestyle now blends more flexible work, travel, volunteering and time with family, rather than a full stop at a traditional retirement age. Work can be a source of both supplemental retirement income and personal fulfillment.

Rising Healthcare Costs

According to research summarized by Hospital Medical Doctor, U.S. per capita healthcare spending has grown from approximately $4,500 in the early 2000s to more than $15,474 in 2024, significantly outpacing inflation. In 2024, the cost of healthcare for Americans over age 85 was approximately $46,500, roughly twice the amount of the average retiree’s annual Social Security benefit.

This rapid increase in healthcare expenses has a significant impact on retirees’ ability to live comfortably in retirement. Many Americans must cut back on other retirement expenses in order to afford their medical costs, and healthcare expense planning has become an essential part of retirement planning.

For millionaires, higher wealth may provide more options, such as supplemental insurance or private care, but it doesn’t remove the need to plan for healthcare costs. A thoughtful retirement plan should include:

• Estimates for rising premiums and out-of-pocket costs
• Strategies for funding long-term care needs
• Coordination of healthcare expenses within the broader retirement income plan

How Creative Planning Can Help

Even if you feel financially secure during your working years, you may still wonder whether you’ll be able to afford the retirement lifestyle you hope to achieve. Retirement today requires more than savings — it requires clarity, strategy and a partner who understands the unique challenges facing retirees. If you want a plan tailored to your lifestyle, your family and your long‑term vision, our team is here to help you move forward.

At Creative Planning, we understand your concerns. Our experienced professionals are here to help you approach retirement with confidence.

We work with you to establish a comprehensive financial plan that aligns with your financial goals and vision for a comfortable retirement. This includes helping you:

• Evaluate your current portfolio and saving strategy
• Model different retirement ages and lifestyle choices
• Plan for healthcare costs, longevity risk and legacy goals

With your goals as our guide, we strive to provide clarity every step of the way.

To get started, please schedule a call with a member of our team.