Home › Guides › How Long Will $1 Million Last?
How Long Will $1 Million Last in Retirement? (And Is It Enough?)
"Is $1 million enough to retire?" is one of the most common retirement questions, and the honest answer is: it depends on how much you spend, how long you live, what your investments earn and what other income you have. The good news is that you can work it out with simple math. This guide shows how long $1 million can last under different assumptions.
The quick answer
A common rule of thumb says you can withdraw about 4% of your savings in the first year of retirement and adjust for inflation afterward. On $1,000,000, that is $40,000 a year, or about $3,333 a month, before taxes. If that, plus Social Security and any pension, covers your spending, $1 million may be enough. If you want to spend much more, it may run out within your lifetime. Read more about the 4% rule and its limits.
How many years will $1 million last?
The table below shows roughly how long $1,000,000 lasts if you withdraw a fixed amount each month in today's dollars. Withdrawals rise with inflation so your buying power stays the same. It assumes a steady yearly return before inflation, 2.5% inflation, and no taxes.
| Monthly spending from savings | 4% return | 5% return | 6% return |
|---|---|---|---|
| $2,500 ($30,000 a year) | About 46 years | About 68 years | Does not run out |
| $3,000 ($36,000 a year) | About 36 years | About 46 years | About 81 years |
| $4,000 ($48,000 a year) | About 25 years | About 29 years | About 36 years |
| $5,000 ($60,000 a year) | About 19 years | About 21 years | About 25 years |
| $6,000 ($72,000 a year) | About 16 years | About 17 years | About 19 years |
Illustration based on steady returns, withdrawals made at the end of each month, and no taxes or fees. Real markets go up and down, so actual results will differ. Use the calculator for your own numbers and for the chance your money lasts in simulated markets.
What the table tells us
- Spending matters more than almost anything else. Moving from $3,000 to $5,000 a month shortens the lifespan of the money dramatically.
- Returns matter, but they are not guaranteed. The same $4,000 a month lasts about 25 years at a 4% return and about 36 years at 6%. That is a big difference, so use cautious assumptions.
- Retirement age changes the picture. If you retire at 65, 25 years takes you to 90. If you retire at 55, you need the money to last longer.
Is $1 million enough for you? Four questions
- How much will you spend each month? Start with your current spending and adjust for expenses that will end or begin, such as a mortgage, commuting, healthcare and travel.
- How much guaranteed income will you have? Social Security and pensions reduce how much you must take from savings. For example, if you spend $5,000 a month and receive $2,000 from Social Security, you only need $3,000 a month from savings, and the table shows that $1 million at a moderate return can cover that for several decades.
- How long do you need it to last? Many people plan to age 90 or 95, because living longer than planned is a bigger risk than leaving money behind.
- What are your taxes and healthcare costs? Withdrawals from traditional 401(k)s and IRAs are generally taxed, and healthcare can be a major cost, especially before Medicare begins at 65. See your options before 65.
When $1 million may feel like too little
- You want to retire early, which means a longer retirement and years without Social Security
- You live in a high-cost area or expect large healthcare bills
- You have little or no guaranteed income
- Most of your savings are in traditional accounts and will be taxed as income when withdrawn
When $1 million may be plenty
- You have Social Security or a pension that covers a good part of your spending
- You own your home outright or have a low-cost lifestyle
- You are flexible and willing to spend a little less after poor market years
How to stretch your money
- Delay Social Security to receive a larger monthly benefit for life. See how claiming age matters.
- Keep a flexible budget. Cutting spending a little after a bad market year helps a great deal. Learn why early bad years matter most.
- Work part-time for a few years to reduce early withdrawals.
- Watch fees. A 1% yearly fee can reduce a long-term balance by about a quarter.
Enter your age, savings and the income you want to see how long your money may last.Open the retirement calculator
Frequently asked questions
How long will $1 million last if I withdraw $4,000 a month?
Roughly 25 years at a 4% return, 29 years at 5% and 36 years at 6%, assuming 2.5% inflation, steady returns and no taxes. Real markets vary, so actual results will differ.
Can I retire at 55 with $1 million?
Possibly, if your spending is modest, but you would need the money to last 35 to 40 years and would have years before Social Security and Medicare. A lower withdrawal rate, a cash cushion and a plan for health insurance are important. Read about retiring before 65
How much can I spend per month from $1 million?
At a 4% withdrawal rate, about $3,333 a month before taxes in the first year, adjusted for inflation afterward. A more cautious 3.5% is about $2,917 a month. Social Security or a pension would come on top of that.
Use the free calculator to see whether you are on track.Open the retirement calculator
This article is for general educational purposes and is not financial, tax or legal advice. Rules and limits change; confirm details with official sources or a qualified professional. See our Disclaimer.