Is 1 million EUR enough for a comfortable retirement in Spain with the non lucrative visa Spain, excluding the primary residence? What’s your personal target amount for retirement?
Question
Just curious and I know we will all have different answers here but is 1M EUR in assets (cash and investments) a comfortable amount for you to retire and live passively in Spain without worrying? Let’s exclude the house you live in from the computation as it is not liquid but I just want to know everyone’s perspective on this. If it is too high or to low, what is your number?
Answers
These are the answers of some Facebook group members:
”If you had $1,200,000 in assets in index funds 2 years ago it would have dropped to around 790,000 and would have recovered to only about 925,000. So think about whether can you handle the volatility.”
”It depends on how old you are, and how you think comfortable living. or how luxurious you want to live? Lifestyle is different. But generally, or average, if you are single, 2000 Euro a month is good for living in Spain, so a year, 24.000 Euro. If you have one million Euro,( Just supposed that we have no income at all. and this 1 million Euro is all savings. so no income tax at all too.) Plus inflation rate averages 2 p.c. a year. Well, 25000 euros a year, you need to live in Spain.
(Just live as normal. not a luxury at all) so for 10 years, 250,000 Euro, for 20 years, 500,000 Euro… and go on like this. So you can live in Spain with one million Euro for 40 years unless your bank is bankrupted or Spain collapses with killing inflation or a military coup or the Euro is broken down, or world war.. such disasters will come.. or if you live more than 100 years? or if you are now 20 or 30 years old? all depending on personal conditions”
”We will retire with around 700,000$ in retirement fund but will be able to live on our monthly Social Security. It depends on your age’
Conclusion
In conclusion, according to Spainguru Facebook group members,, determining the adequacy of €1 million for retirement in Spain (excluding one’s primary residence) isn’t a one-size-fits-all answer. Factors such as an individual’s age, desired standard of living, unexpected geopolitical or economic events, and potential external income sources, like social security, play a crucial role.
Moreover, the historical volatility of financial markets suggests that one’s assets can fluctuate significantly, further emphasizing the need for a solid financial plan. For a more tailored and holistic approach to retirement planning in Spain, consulting with a financial advisor is highly recommended.
